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MENAFN- Daily Forex)
Ethereum continues to grind sideways as we test the 50-day EMA on Wednesday yet again. This is a market that for me at least is trying to find some type of bottom. For those of you who may have missed the significant rally in Bitcoin, history shows us that once Bitcoin really starts to take off to the upside, eventually Ethereum and then the smaller coins will follow right along.
If that is something that you're interested in, this is a market that you may want to keep an eye on. The area right around $1,800 has been a bit of a magnet over the last couple of weeks, but below there, we have even more support at the $1,500 level based on volume and history. If we could break above the $2,000 level, that would obviously be a very bullish sign for the market to continue to go higher.
A Barrier Above
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The 200 day EMA certainly sits right around the $2,400 level and offers a bit of a barrier. I don't think we're anywhere near that. I don't think we're going to get near that anytime soon, but that is something to keep in the back of your mind going forward. Keep in mind Ethereum is the backbone for a lot of the alternative ecosystems anyways. So, with all of that being said, I think you've got a situation where traders are going to try to come up with a reason to get momentum going. But those who are longer term believers in Ethereum are almost certainly going to pay close attention to the idea of accumulation.
Accumulation, of course, is a major part of Dow theory, which a lot of traders will use to swing trade a massive move on longer term charts. When you zoom out, you can see the $1,500 has been a major support level even though at one point we broke down towards the $900 level. But since January of 2023, it has been important. So, it'll be interesting to see how this plays out. Buying on the dips is a possible strategy. And if you're a longer term investor, this has to be an interesting place. If you're a short term trader, though, back and forth in a tight range bound short term chart might work for you as well.
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