- Ethereum has shown itself to be a little bit of a mixed picture during the trading session on Monday after what had been a very big Sunday once it became a little bit obvious that perhaps the Chinese and US tension was going to drop a bit. But I’d point out that we are struggling with the 50 day EMA. If we can break above the $4,300 level, then we could go higher. That would clear the 50 day EMA. But right now, we’re basically stuck between the 50 day EMA and the 200 day EMA indicators, but we are above the $4,000 level, which is a large round psychologically significant figure.
- Looking from a structural standpoint, you can make the argument that we have made a lower low, a similar high and even lower low. So, the question is, are we going to make a lower high? And I think that’s going to be the question here in this market. Keep in mind, Ethereum is not Bitcoin, meaning that we are not going to see uh traders looking to perhaps uh jump into this right away like they do with Bitcoin. But I believe ultimately, you’ve got a scenario where Bitcoin must break to the upside to drag Ethereum right along with it. I do believe that the real prize at the moment is $5,000. But that’s going to be difficult, I think, to achieve in the short term.
Trying to Reach $4500?
This looks like a market to me that is trying to get somewhere near the $4,500 level but just doesn’t have the momentum. A pullback from here opens up the possibility of a move down to the 200 day EMA, which is $3,500. Below there, technically we’re in a downtrend. We’ll just have to wait and see, but I’m watching the structure of the market and it’s not really a lower high that we made on October 7th, but it wasn’t like we went higher than the previous highs. So, the next couple of days, I think, are going to be very crucial. We’ll have to pay attention to Bitcoin. If it really takes off and that could help Ethereum, but as I’m saying right now, this is a very questionable market.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
