The Ethereum market initially tried to rally during the trading session on Thursday only to turn around and fall just below the $4500 level. The $4500 level was resistance of the last couple of trading sessions, so it does make a certain amount of sense that we would see a bit of “market memory” coming into the picture right now. The $4500 level is yet another area that a lot of people will be paying attention to due to the fact that the market does tend to move in $500 increments, and therefore it is not a huge surprise to see a little bit of action here. That being said, I still believe that the uptrend is very much in track, and therefore I think we have an opportunity to buy if we break down.
If we do break down from here, I believe that the 50 day EMA which sits just above the $4000 level and offers plenty of support. The 50 day EMA is starting to slope higher, and therefore it does suggest that the intermediate trends are going to continue to hold, and the $4000 level will probably end up being a major “floor the market” as it was a significant resistance barrier previously, and an area where we have seen a lot of attempts to break down through it. The fact that we could not do it so many different times tells me just how much buying pressure there is there. I hope this market breaks down from here towards the $4000 level, which would allow me to pick up quite a bit of value. I have no interest in selling Ethereum anytime soon, but I do recognize that if we were to break down below the $4000 level it would be a very significant break down, and then I would simply let the market fall further so I can add to my longer-term position.
Currently, the 200 day EMA sits at the $3000 level, which of course would be a major technical indicator that a lot of people would pay close attention to. It is not until we break down below there that you would have to consider it “crypto winter”, something that I think we are nowhere near reaching towards as Ethereum has become more mainstream this time, so therefore any selloff is going to be much less drastic that it was the last time the market sold off a few years ago.
