Ethereum Price Forecast December 12, 2017, Technical AnalysisEthereum continues to be very noisy, as we chop around in a well-defined trading range. Monday saw more buyers jump into the marketplace, reaching towards the highs of that range.
Ethereum rallied during the trading session on Monday, almost as soon as we opened. The $420 level offered enough support to send the market towards the $470 level, but I think that the overall consolidation can be measured from the $400 level on the bottom to the $500 level on the top. I think this is more of the same, as although we have gained roughly 8% as I record this, the reality is that these moves have been somewhat predictable, as once we get close to the $400 level, there seems to be more than enough interest to push the market to the upside.
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I think in general, we need to form some type of range bound system to take advantage of this phenomenon, with an eye to the upside as we are in a longer-term uptrend. If we can break above the $500 level, then the market should continue towards the $600 level above, based upon a measurement of this consolidation. Ethereum has taken a backseat to Bitcoin as Bitcoin opening on the futures market has grabbed all the headlines and attention around the world. I believe that Ethereum will eventually break out to the upside, so building up a larger position on short-term pullbacks might be a way going forward to take advantage of what has been a very choppy trading condition.
ETH/USD Video 12.12.17
If we were to break down below the $400 level, that should send this market much lower, perhaps reaching down to the $300 level based on the measured rectangle. I would be a bit surprised by this, but recognize that it is, in fact, a possibility. In general, I think that the cryptocurrency mania continues, which will make most cryptocurrencies do reasonably well over the medium-term, but I would be very careful about jumping “all in” immediately, as there has been such a massive run-up over the last several months. After all, one looked at over the last year, Ethereum has outperformed Bitcoin.