Ethereum was down about 1% on Wednesday, but as you can see, we continue to hang around the $4000 level. At this point, if we can break above $4100, it will confirm that there was a significant ascending triangle that we just broke out of, and could send this market higher. Nonetheless, I think that most people believe that Ethereum is going to go higher at the beginning of the new year, so quite frankly most people are probably just hanging onto their position. (I for one am doing that.)
I would anticipate a lot of noisy trading between now and New Year’s, but at the end of the day it should be rather bullish, not bearish. After all, with the lack of liquidity, the Ethereum market could move rather quickly based upon a sudden large order. Ethereum continues to be one of the best real use cases for cryptocurrency, and I think that is going to continue to be the case going forward. I have recently seen quite a few people calling for the end of the Ethereum rally, which is generally when you start to see smart money come back into the picture and buy an asset.
I think there is significant support all the way down to the $3600 level, and I do believe that based upon options information, there is a ton of money pushing Ethereum to the upside at the beginning of next year, so I do think that it is only a matter of time. The $3500 level should offer a significant floor, and then the $3000 level. I do not want to see it go that far though, I think it is much more likely that we will just kind of grind away to the upside ever so slowly and then finally break some type of significant resistance. Keep in mind that Ethereum has a lot of real world use cases, something that a lot of crypto does not have. With that being said, I have been using this recent selloff to buy bits and pieces of Ethereum, and will continue to do so. I have no interest in shorting, because I expect that the Ethereum market is going to be one of the better performers next year due to the fact that there are major changes coming to the network.
