ETH/USD Forecast Today 02/01: Waiting For Bitcoin (Video)
(MENAFN- Daily Forex)
Ethereum was pretty back and forth during the trading session on Tuesday, essentially flat. We continue to hang around the 50 day EMA, which of course is an indicator that a lot of people pay attention to. But it is worth noting that the bitcoin market initially took off during the session, thereby driving money into Ethereum as well as other alt coins.
So, with that being said, I am very interested in what happens next because I do think that we are in the same area that has been supportive in the past and therefore it does make a certain amount of sense that we would see Ethereum continue to attract a bit of attention. It is worth noting that Bitcoin has pretty much been all over the place during the session. So, most of this is probably heavily influenced by a lack of liquidity.
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If that is the case, then you can't read too much into it. But with that being said, I do see a couple of areas that are worth paying close attention to, mainly the $3,600 level. If we can take that out to the upside, it's likely that Ethereum goes looking to the 4,000 level.
On a Break Lower
If we break down from here, the 200 day EMA, which is close to the $3,063 level, offers support right along with the $3,000 level. Unfortunately, Ethereum needs Bitcoin to get moving. If Bitcoin takes off to the upside, then one would assume that the inflows happen over here as well. As things stand right now, we are basically in a massive consolidation range and in holiday trading, of course, liquidity is always going to be a bit of an issue. So, while I am optimistic, I think bullish is a very strong word. I certainly am not bearish, but I think we're just going to continue to kick this market back and forth with an attempt, at least, to go higher.
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