Ethereum markets did almost nothing during the day on Tuesday, as we continue to hang about the $400 level. Ultimately, the market should continue to be a bit tight, but I think the market is essentially consolidating overall.
Ethereum markets went back and forth during the trading session on Tuesday, as we were reaching towards the $400 level. The market doesn’t seem to have much in the way of momentum, so I think we are essentially in a “wait-and-see pattern.” If we rally at this point, I suspect that the $425 level will be resistance. If we pull back from here, there should be plenty of support underneath that the $360 level, but overall it seems as if the longer-term attitude of crypto currency markets is a “sell the rallies” situation. Ultimately, I believe that will continue to be how crypto currencies behave in general, as there has been such destruction to the bullish attitude previously found.
Ethereum was choppy against the Euro as well, as we find ourselves in the middle of an obvious consolidation area with the €350 level at the top being resistance, and the €290 level on the bottom being support. When I look at this chart, I recognize that there is a 50-50 chance as to where we go next, and I believe that we will continue to find a lot of volatility. I would be more interested in selling near the €350 level, as it has shown to be massive resistance. The market breaking down below the €290 level would be a very negative turn of events, allowing the market to unwind down to the €250 level. If we break out to the upside, we could go as high as €400 above, which of course is a large, round, psychologically significant number.
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.