The Ethereum market bounced a bit Wednesday as the market is bouncing from the hammer that had been formed during the Tuesday session. The market looks likely to continue to go back and forth in this general vicinity, but the longer-term trend has not changed. Because of this, I still think you will have plenty of time to build a bigger position, which is my plan from a longer-term standpoint.
A lot could come down to risk appetite, which presently is in the dumps. The market has been very noisy over the last couple of weeks, and although we have seen a bit of a short-term breakout, the reality is that the market has not completely changed the trend at this point. Because of this, the market is likely to see a lot of back and forth, perhaps confusion more than anything else. That being said, I think the $1200 level is underneath, and therefore it’s likely that there will be a bit of interest in that area. If we break down below there, it’s likely that we go down to the $1000 level. If we break it down below the $1000 level, then it’s likely that the $900 level gets targeted.
If we see the market breakdown below the $900 level, things can get rather interesting. At that point, I would anticipate that we could go looking all the way down to the $500 level. It is in that general vicinity that I think you will see longer-term traders come in and build a bigger position. This is my plan, but obviously, there’s no way to predict the future, rather you prepare for it. It is because of this, that if we break above the $1800 level, I will have an eye on the $2000 level which would be the next target. Quite frankly, I don’t see that happening, but it is worth noting that the $2000 level is crucial. If we were to break above there, then the market is likely to continue to go much higher, perhaps entering a “buy-and-hold” scenario.
All of that being said, the most likely scenario is going to be that volatility picks up and eventually we see more selling. However, certainty is the one thing that we most certainly do not have in the crypto markets.
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