- During the trading session on Monday, we have seen Ethereum attempt to try to break above the 50 Day EMA, which is an indicator that a lot of people will be paying close attention to.
- With that being said, it’s not a huge surprise to see that the market has pulled back a little bit, but we are still in the process of trying to find some type of bottoming.
- The bottoming process is not something that happens immediately, at least not without some type of massive headline, so at this point in time I think it makes a lot of sense that we still see a bit of hesitation.
Technical Analysis
The technical analysis for Ethereum is somewhat negative, but ultimately, I think the market is likely to continue to see quite a bit of noise in this area. After all, the $2000 level is just above the 50 Day EMA, and of course we also have the $1500 level below, which did act as a bit of a floor for the market. Ultimately, I think this is a market that still trying to find the bottoming pattern. A bottoming pattern for a market that has been sold off the way this one has is quite often a messy affair, and I believe that’s what you are seeing here.
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Volume is starting to spike here and there, and eventually it may become a little bit more sustained. That’s exactly what this market needs, sustained of volume, as there has been a serious lack of confidence when it comes to Ethereum, especially as risk appetite in general has been horrible recently. I think given enough time, the market will continue to go higher, but in the short term it looks a lot like a market that will be one where buyers are coming in and picking up little bits and pieces in order to build up a larger position. That is essentially how Bitcoin acted for a while, and this is starting to mimic that.
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