Ethereum Price Forecast December 8, 2017, Technical Analysis

Ethereum initially tried to rally during the trading session on Thursday, but found the $440 level to be far too resistive to continue going higher. By doing so, the market ended up forming a shooting star, but at the bottom of a consolidation rectangle. That typically is a negative sign, so I suspect that we may get a little bit of a pullback from here. I would anticipate that there is a lot of support at the $350 level underneath. That is an area that was resistance in the past, specifically October 16. I think that this pullback should be a buying opportunity though, as we have had a bit of a “blow off top” in the Bitcoin market, and that will probably have ramifications in the crypto currency space in general.

ETH/USD Video 08.12.17

On the other hand, if we can break above the $440 level, we could go as high as the $480 level and still be in the consolidation that we have seen previously. I think that there is a significant psychological barrier at the $500 level, and I find it interesting that while Bitcoin has broken to the upside drastically, Ethereum has not been able to do the same over its psychological barrier. In fact, Bitcoin briefly touched the $19,950 level in the Coinbase exchange, but has also rolled over rather drastically, and I think the fact that Ethereum did not break through that barrier might’ve been a bit of a canary in the coal mine when it comes to the lack of conviction. All things being equal, I think that Ethereum is probably a safer trade to the upside right now than Bitcoin. That isn’t to say that they both will go higher or that Ethereum will fall, just that Bitcoin has gotten out of hand, and as I record this we have dropped thousands of dollars from the high of the session in the Bitcoin markets. I think that Ethereum is probably the easier market to trade right now, because when markets get out of hand like Bitcoin has, nothing good comes of it in the end. If we were to break down below the $350 level, then we should go to the $300 level. In general, I think eventually the buyers return.