- Ethereum has rallied quite nicely to break above the $4,500 level, showing signs of strength again.
- We have been consolidating between $4,200 on the bottom and $4,500 on the top.
- By doing so, it looks like we could get a measured move of about $300, and that brings us right back to the $4,800 level, which has been important more than once.
In fact, it was basically the swing high as we just couldn't get above there to go look into the $5,000 level. The 50 day EMA sits just below the $4,200 level. And that should offer support as well as the $4,000 level below there. Anything below that level would change everything, but it isn’t something I see happening easily.
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Sideways Action Likely
Ultimately, this is a market that I think continues to see a lot of back and forth sideways action. And now that we are rallying a bit during the trading session here on Friday it suggests that we are in fact trying to continue the overall long-term uptrend. Really, it's not until we break down below the $4,000 level that I think you would have to have an argument that maybe the trend is changing, but I don't know if that happens very easily, but you can watch Bitcoin to get a bit of a heads up as to where Ethereum might go.
After all, Bitcoin tends to lead to the rest of crypto. We have the Federal Reserve interest rate decision next week, and more importantly, the press conference and statement. With that being the case, the market is likely to continue to see more of a buy on the dip attitude. I don't really have any interest in shorting Ethereum. It has proven itself to be resilient. And I think that remains the case.
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