Potential signal:
- I am a buyer on a daily close above the $4500 level.
- I would have a stop loss at $4300, and a target of $4875 level.
Ethereum has been very noisy over the last couple of days, but the trading session on Wednesday was in fact uh rather important in the sense that we had shown a lot of volatility to the upside. This is a market that's been somewhat sideways in the last couple of days, but I do think that we have a situation where traders are trying to save crypto as you have seen in the Bitcoin market.
Relatively Speaking, Ethereum Has Fared Better than Bitcoin
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Ethereum did not get the type of pullback Bitcoin did, which I find interesting. Normally it's the other way around. But that being said, I think you have to look at this through the prism of a market that is trying to determine what the risk appetite is going to be overall. With that, I look at short-term pullbacks as potential buying opportunities, and I recognize that the $4,200 level has now proven itself to be at least somewhat supported. If we break down below there, then the market would go looking towards the 50-day EMA underneath, which sits right at the $4,000 level. That, of course, has people thinking that maybe, just maybe, there's a shot of the market really finding support there and reaching back towards $5,000, even if we do drop a bit. Just above, we have the $4,500 level.
On a Move Higher
Breaking higher opens up a move to that same $5,000 level. As long as we can stay above the $4,000 level, I think you have a situation where traders are going to remain more buy on the dip and more positive on Ethereum. It's been in a strong uptrend, and a little bit of chopping back and forth does make a certain amount of sense as we head toward the crucial jobs number on Friday, which have people thinking about the Federal Reserve and therefore risk appetite. All in all, though, this still looks like a positive market.
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