Ethereum rolled over a bit during the trading session on Wednesday, reaching down towards the $400 level but finding buyers. As I look at this market it seems to be a bit range bound, and I believe that $400 will be very important. The $500 level above is massive resistance, so I think we continue to bounce around between here and there. In general, this is a market that should eventually find buyers, and I would also point out that the stochastic oscillator is crossing near the oversold area, meaning that perhaps the buyers are looking to build up enough momentum to finally break out to the upside as the $500 level is, of course, a large, round, psychologically important figure. Once the market feels comfortable above the $500 level though, we should continue to go much higher.
ETH/USD Video 07.12.17
If we were to break down below the $400 level, the market could go looking towards the $350 level below, which has a significant amount of support, extending down to the $340 level. In general, though, I believe that the markets will continue to find reason enough to continue to go higher. A break above the $500 level would target $525 level next, but I would not be willing to take profit at that point because I believe it would be the next leg higher, and more of a “buy-and-hold” scenario. Noisy trading conditions should continue, so by using a wide range to bounce back and forth, we can profit from what seems to be an obvious move. Bitcoin has been rallying rather drastically over the last several sessions, and eventually, that will translate into other cryptocurrencies going higher as well. If we break down, I’m not willing to sell this market, but I’m willing to look for support at the previously mentioned levels above, offering an even cheaper way to get into Ethereum, a market that I think has a bright future.
This article was originally posted on FX Empire
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