(MENAFN- Daily Forex)

• Ethereum initially rallied during the trading session here on Monday but has run into a little bit of trouble above the $3,400 level.
• At this point in time, we have pulled back rather drastically, but we have also seen the 200-day EMA offer support, so I think we've got a situation where the technical traders will be watching Ethereum quite closely. Quite frankly, this is an area that I think is interesting and I think will continue to attract buyers on dips. But I also recognize that this is a market that is dealing with a lack of liquidity on Martin Luther King Day in the United States, and I think that's something that you can't ignore.

Crypto Has Friends in Washington DC Now

The pro-crypto crowd in Washington DC showing up of course will help, but the question now is whether they are actually going to do anything. Quite frankly, it doesn't really matter how pro-crypto an administration is if they don't pass legislation. That'll be interesting to see how that plays out, but I think ultimately short-term pullbacks continue to trigger buying. And quite frankly, I like the idea of buying Ethereum closer to the 200 day EMA if I can. If we break down from here, it's likely that the $3,000 level offers support as it had been previous resistance. Ultimately, the market is very noisy, but I do think that we still favor the upside. You probably would also have to keep an eye on Bitcoin because if it rallies, it'll probably drag Ethereum right along with it.

Ethereum would continue to offer opportunities at this point in time, and I think you are looking at another chance to get involved in a“value area”, as the $3400 level is an area that has been fairly reliable. At this point, I am a buyer.

Potential Signal: I am a buyer of ETH now. I would have a stop loss at the $3330 level but would take profit at the $3800 region Forex Brokers1 Get Started 74% of retail CFD accounts lose money

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