(MENAFN- Daily Forex)

• Ethereum has had a rough Tuesday session, dropping rather precipitously from right around the $4750 level. With that being the case, the market is worth paying close attention to, because it can be used as a bit of a risk barometer, e
• specially when it comes to other cryptocurrency markets. While the Ethereum market is considered to be secondary to the Bitcoin market, and therefore I think you need to be cautious because if Bitcoin continues to struggle, Ethereum is going to get crushed.

As Goes Ethereum, so Goes Altcoins

I think Ethereum is also important to watch because quite frankly, if the Ethereum market starts to crumble, then the smaller“altcoins” will find themselves in a lot of trouble. With that being the case, they get the look at this through the prism of whether or not we can get some type of buying pressure in this market to lift others. That being said, it looks like the $4400 level has been important in Ethereum, so if we can keep that level, then it would be a very bullish sign. If we break down below there, then we could be looking at a move down to the 50 Day EMA at the $4283 level.

On the upside, if we could break above the $4750 level, then it's likely that the Ethereum market will eventually try to touch the $5000 level. It'll be interesting to see how that plays out, but I do think we've got a situation where this is more or less going to be a“buy on the dips” scenario. Ultimately, I think the $4000 level also offers a significant amount of support, so it'll be interesting to see how that plays out. As long as we can stay above that region, then I think Ethereum is okay and this was just end up being a short-term pullback.

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