The Ethereum market rallied significantly on Tuesday but gave back the gains to form a less-than-impressive candlestick. That being said, the massive hammer from the previous session was probably a bit overdone as well, so I think at this point it does make sense that we would see a tiny bit of hesitation. Nonetheless, this is a market that has been rallying for the last couple of sessions after a brutal selloff, so I think it is probably only a matter of time before we go looking towards the 4500 level.
Any move above the 4500 level opens up the possibility of a move towards the 4750 level, maybe even the 5000 level. The Ethereum market continues to look very bullish, with the 50 day EMA is sitting at the 4100 level and rising. We have been in an uptrend for a while, so the question now is not so much as to whether or not we are still in an uptrend, but whether or not we are ready to break out right away. I do not think that is the case, and it is very likely that we probably have some work to do in the meantime. The 4000 level underneath will attract a lot of attention, which is where we had seen support a couple of times in the past, right along with a massive amount of resistance.
The massive hammer that formed over the weekend suggests that we have much further to go, and I think that we will eventually go looking towards the all-time highs again and perhaps beyond. This will be especially true if we begin to see the markets price in the idea of the Federal Reserve not being able to taper or put up with rates rising. Ethereum continues to have a strong use case as well, so I am a longer-term holder of this crypto market. If you remember a while back, Bitcoin had struggled like this with the $20,000 level before ripping to the upside. It is very possible we are seeing a similar situation here in the Ethereum market. I have no interest in shorting, but recognize that anything below 3000 would be an absolute disaster.
