- The Ethereum market has a wild day again on Friday, as we continue to see massive moves to the upside.
- Part of what we are seeing here is Ethereum playing “catch up” to what’s going on with Bitcoin, which has been very bullish.
- This is a market that I’ve been talking about occasionally, because I think a lot of people have been ignoring, at their own peril.
Ethereum is the backbone of a lot of alternative ecosystems, so because of that it makes a certain amount of sense that has there is more interest in cryptocurrencies, there’s a lot of interest in Ethereum in general.
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The candlestick for the trading session on Friday of course is interesting as it pierced the 200 Day EMA but gave back gains. That’s not a huge surprise though, because the market rose 39% in just 2 trading sessions! That obviously is a bit too much, so I think at this point in time you need to look for short-term pullbacks as buying opportunities, with a special eye on the $2000 level, a large, round, psychologically significant figure and an area where we had seen a lot of selling pressure previously.
This could kick off the next “altcoin season” if this keeps up, but in the short term, I would stick to both Bitcoin and Ethereum. I think the market has gotten ahead of itself, but it is only a matter of time before we see buyers jumping in to take advantage of “cheap coins.” On the other hand, if we were to break above the top of the candlestick, then it could send Ethereum racing higher, but I would be a little bit cautious in that environment. In fact, I would probably jump to smaller coins to take advantage of what would be a flooding of capital into the cryptocurrency market. The most likely of outcomes though, is that I will be a buyer of dips.
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