Pulls Back from Major Resistance Barrier

[ad_1]

You need to be very cautious with your position sizing unless, of course, you are looking to build a longer-term position.

  • The Ethereum market pulled back a bit on Tuesday to show signs of selling pressure.
  • The $1800 level is an area that extends to the $2000 level and has been a major resistance barrier previously, as well as a major support level.
  • “Market memory” comes into the picture and should continue to affect how the market moves.
Advertisement

image

Risk Appetite Suggests Positivity

Ethereum has gotten a bit of a boost over the last couple of weeks as the risk appetite has gotten better, and of course, the network is starting to get close to a major upgrade. This suggests that the market is more likely than not going to be seeing more use, but whether or not that actually happens is a different situation altogether.

Underneath, the 50-day EMA should be supported, near the $1325 level. The $1200 level underneath there is the top of the previous consolidation area, so I do think that it’s an area that a lot of people would be paying close attention to because it also would have a lot of “market memory” going forward. The market breaking down below the $1200 level opens up the possibility of a move down to the $900 level. Anything below the $900 level opens up a massive amount of selling pressure that could cause the Ethereum market to collapse down to the $400 level.

If the market were to break to the upside and continue to show bullish behavior, clearing the $200 level opens up the possibility of a big move higher, and more likely than not would kick off a longer-term uptrend. At that point, I’d be looking for Ethereum to go to the $4000 level, but I don’t think that happens very quickly.

The only thing that you can count on in this market from what I can tell is going to be volatility. Because of this, you need to be very cautious with your position sizing unless, of course, you are looking to build a longer-term position. I think that a pullback at this point in time makes quite a bit of sense and could allow traders to slowly build up a bigger position that believes in the longer-term efficacy of Ethereum, and whether or not the demand will continue to pick up for the network. Longer term, it does look very interesting, but that does not necessarily mean that you need to go “all in” at this point.

ETH/USD

Ready to trade our Ethereum forecast? We’ve shortlisted the best MT4 crypto brokers in the industry for you.

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using xMetaMarkets services, please acknowledge all of the risks associated with trading.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions such as United States, Canada, Iran, Cuba, France, and some other regions, and is not intended for distribution to, or use by, any person in any countries or jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2018 - 2024 xMetaMarkets.com. All Rights Reserved.