Ethereum markets drifted lower during trading on Friday, but remain range bound at this point. It’s likely that we will see a bit of a bounce sooner rather than later, but I also think that the markets are susceptible to sudden shocks.
Ethereum markets drifted lower during the day on Friday, losing 1.5% as the Europeans went home and the Americans took over. The market looks as if it is going to continue to test the $850 level for support, an area that has been somewhat reliable. Even if we break down below there, the market will probably continue to find buyers underneath. I think that the market is a bit sluggish currently, as volume is very soft. I think that the $800 level underneath is massively supportive, just as the $900 level has been massively resistant. Short-term pullback should offer buying opportunities.
Against the Euro, Ethereum struggled a bit, losing even more. We tested the €690 level but have bounced since then. By breaking through the €700 level, it looks as if we could go bit lower, perhaps down to the €675 level next. I recognize that the market is struggling to break above the €725 level, so that’s the obvious “ceiling” on short-term trading. In general, I believe that the market will continue to see a lot of noise, but if we can break above the €725 level, the market could go much higher, perhaps reaching towards the €750 level, and then the €800 level. Otherwise, if we break down below the €675 level, the market probably drops to the €640 level, an area that has seen massive support recently. It does seem to favor the downside right now, but I’m not looking for some type of breakdown, just a grind lower. If we break out, it’s going to take even more effort than simply sliding sideways or lower.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.