(MENAFN- Daily Forex)

• Ethereum has rallied a little bit during the early hours on Wednesday, as it looks like we are trying to hang on to the same support region that we have been watching for some time.
• That being said, this is a somewhat ominous looking chart, but it also is interesting that we could see the market use this as a bit of a“floor in the market” near the $3000 level.
• The $3000 level is a large, round, psychologically significant figure that's been important for some time, as it had previously been massive resistance.

Ethereum Follows Bitcoin

It doesn't matter what you think about the Ethereum versus Bitcoin debate, the reality is that as goes Bitcoin, so goes everything else as far as digital assets are concerned. Right now, Bitcoin just isn't driven enough to break out, and I think that's going to continue to cause issues for Ethereum. That's not to say that Ethereum won't go higher, it's just to say that Ethereum is going to be a bit of a laggard.

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Other things that I find truly interesting is the fact that the Ethereum market is hanging around the 200 Day EMA, which of course is very important, and a lot of people will look at that as a potential technical indicator that people will be watching. If we can break above the $3200 level, we can probably see quite a bit of momentum coming back into the marketplace, perhaps sending Ethereum higher. I would also need to see Bitcoin rallying at the same time.

On the other hand, if the market were to drop below the $2900 level, we could see Ethereum break down rather significantly, perhaps reaching down to the $2400 level. That's an area where we had launched from back in November, and this would represent a“round-trip” for the market overall, which would of course be a very ugly turn of events. In general, I think we are at a major inflection point.

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