- Ethereum has been slightly positive once it's all said and done during the trading session on Tuesday, but it certainly looks like it's struggling.
- I look at this chart and I see a lot of misery just waiting to happen, but if you are a longer-term trader, perhaps you're looking to get involved and start buying little bits and pieces.
Nonetheless, this is a market that I think will probably move right along with Bitcoin. It typically does. Bitcoin has been struggling. If we are in fact heading into a situation where the economy starts to struggle, then cryptocurrency markets generally get hammered. Ethereum now sees the $2,000 level as a potential resistance barrier. So, if we were to break above that level, I think you could see Ethereum really start to take off.
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On a Break Lower
On the other hand, if we break down below the bottom of the candlestick for the trading session on Tuesday, that opens up a bit of a trapdoor in this market. At that point in time, you have to start to question whether or not we wind up at the $1,500 level. That's a pretty significant drop. But when you look at this chart, Ethereum has basically been lit on fire and left to its own devices.
This does make a lot of sense because unlike Bitcoin, Ethereum is also attached to a lot of alternative coins as it's generally the backbone of most of them. And as the crypto market has been eviscerated, there's no reason to think that Ethereum is going to do well. However, if we can get a daily close above $2,000, then it at least gives some hope. I think if you're a longer-term investor, you're looking at moves like this. You buy a little bit and you dollar-cost average into a bigger position for when crypto winter finally goes away.
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