ETH/USD Price Forecast for the Week of December 4, 2017, Technical Analysis

Ethereum continues to be very noisy, and this past week was no different. We are starting to see a crossover in the overbought section of the Stochastic Oscillator, which of course is a very bearish sign. Beyond that, we have formed a slightly bearish neutral candle, as the market could not hang above the $500 level. We have seen extraordinarily large swings in the value of most cryptocurrencies, as Bitcoin had broken above the $10,000 handle. I believe at this point, it’s likely that we will see some type a pullback, and that pullback could be a nice buying opportunity. I think that the overbought condition continues to be something that people are concerned about, and therefore it makes sense that we will get the occasional shake-up. After all, Bitcoin lost 20% in a couple quick hours during the week.

ETH/USD Video 04.12.17

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Given enough time, I fully anticipate that we will break above the $500 level and that once we get that in our rearview mirror on a weekly close, it’s time to go even higher, as it would become more of a “buy-and-hold” market. Even with the volatility though, I recognize that longer-term traders are probably going to sit and hold over the longer term. Based upon the previous ascending triangle, the market should go looking towards the $560 level, which we have come fairly close to reaching, so therefore I think that the pullbacks will continue to attract traders, albeit tacitly. After all, a lot of the volume in the market now is fresh, in fact, we added 300,000 new accounts to Coinbase alone last week, so that is money that’s going to be shaken out of the market rather quickly. It’s one thing to have held onto this market from the $50 level and watches type of volatility as opposed to seeing in this type of volatility just 24 hours after joining. Keep that in mind, and I think that the new money is going to continue to make this market very unstable. It certainly has an upward proclivity, but quite frankly I think that if we were to break down below the $360 level, that would be very negative and send this market much lower.

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