- The Ethereum market has gone back and forth during the course of the early hours here on Wednesday, as we are dancing around the crucial 200 day EMA.
- Keep in mind that the 200 day EMA obviously is a widely followed indicator and it is offering a bit of a trend line over the last couple of months.
- Ethereum is basically moving at the behest of Bitcoin traders. So, what we’re seeing here is somewhat of a mirror image of recent Bitcoin trading.
- Instead of $110,000 resistance like you have in Bitcoin, in Ethereum you have $2,800. Anything above there could open up a move to the $3,300 level.
Technical Analysis
The 200 day EMA as support right around the $2,500 level is backed up by the 50 day EMA, which of course is sitting just below it. Anything below that could open up fresh selling down to the $2,000 level. And I think that would represent a potential buying opportunity.
Bitcoin has been fairly quiet and of course Ethereum has followed suit, but that also makes sense considering just how much of a push higher we have seen. That being the case, a little bit of time sideways typically is what is needed to work off some of the excess before you go higher. This is an area in the $2,500 region that will probably attract buyers, but we’ll have to wait and see how that plays out. We are also, for what it is worth, in a major supply zone going back to late February. So again, a move above the recent high of the shooting star on Wednesday the 11th, I think opens up a lot of short covering. We’ll need some help from Bitcoin, but if Bitcoin really starts to take off, I suspect Ethereum will follow suit.
Ready to trade ETH/USD? Here’s a list of some of the best crypto brokers to check out.
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.
