Ultimately, this is a market that it is more likely to go higher than lower, due to the fact that the markets have so much to concern themselves with at the moment.

Gold markets only had a limited amount of off-hours trading in the futures markets on Good Friday, but there was a little bit of action in the CFD market. When you look at this chart, you can see that we had recently broken out above a significant barrier in the form of the $1970 level, showing signs that momentum is starting to pick up again. At this point, I think that the gold market is more likely than not to attempt a move toward $2000 above.

If we were to turn around and break down below the candlestick on Thursday, then it is likely that the market will go looking toward the $1950 level, possibly even lower than that. The 50-day EMA is at the $1921 level and rising. The 50-day EMA is a dynamic support level that could come into the picture, showing signs of stability. This is a market where I do like the idea of buying dips. The gold market is getting a nice boost due to the inflationary fears, not to mention the fact that there are a lot of fears when it comes to geopolitics at the moment.

If we can break above the $2000 level, we should be based on how quickly we got above and below it previously. Ultimately, I do think that it is only a matter of time before we get to the very top. That being said, if we were to break down below the 50-day EMA, then you have to take a serious look at the major support area that sits around the $1900 level. That extends down to the $1880 level, so breaking below there would open a trapdoor of the massive downward pressure.

In that scenario, one would have to assume that suddenly we had seen a major shift in risk appetite. Ultimately, this is a market that it is more likely to go higher than lower, due to the fact that the markets have so much to concern themselves with at the moment. Furthermore, the simple momentum is favoring that direction as well, and based upon the previous consolidation area, you can make an argument for a move to roughly $2040 or so. I suspect that is more likely than not going to be the outcome.

The Ethereum markets were very quiet during the trading session on Wednesday, as we hang around the $3400 level. The market is a bit overstretched at this point so we will need to see either some type of pullback or sideways movement in order to grind away some of the froth in an overbought market. Either way, it is probably a market that does very little in the short term. This is not a huge surprise though, especially when you consider how far we have rallied in such a short amount of time.

The markets will continue to be supported near the $3000 level, as the level has a certain amount of psychological importance attached to it, but also a couple of major moving averages. For example, the 50 Day EMA is currently sitting at the $3000 level, while the 200 Day EMA is sitting just above. It looks as if we are ready to form the so-called “golden cross”, which a lot of longer-term traders will pay close attention to. I do not believe in it too much, because quite frankly by the time it forms, you have missed a large portion of the move. However, the market is a bit extended, so I think it is going to take significant effort to push higher.

Ethereum has been leading the way for some time, but as you can see the market has paused. This pause can also be seen in the Bitcoin market, as well as many other smaller coins. It will all move in the same direction, and it is worth noting that we are cracking out of a “W pattern”, which is a very bullish sign, so traders will have to pay close attention to whether or not we break higher.

If we do, the “measured move” of the W pattern is a move to the $4500 level, which is basically the all-time high. I do think that eventually, we could get there, but whether or not it is easy is a completely different question altogether. Pullbacks should be thought of as buying opportunities, the impulsive move that we had seen on Monday does suggest that there should be a bit of follow-through eventually. Once we break above the $3500 level, I anticipate that a lot of people will jump into the market and try to take advantage of momentum.