People will be paying close attention to any little bit of a pullback as an opportunity to build a longer-term “buy-and-hold” scenario.
The last couple of candlesticks have been shooting stars, and that does suggest that perhaps we are going to continue to see a little bit of downward pressure. The $1800 level is an area that had previously been the beginning of this resistance barrier that we are in and it’s likely that we would see is a little bit of a reaction. That area should in theory be a bit of a small support level as “market memory” could come into the market. Ultimately, this is a market that I think will continue to be very noisy, and it’s likely that what we see is a situation where buyers could come back in and pick up little bits and pieces of Ethereum, but you should keep in mind that the $1600 level being broken to the downside could send this market lower.
Ethereum does have the distinction of the major upgrade coming, so it’s likely that will continue to keep Ethereum a bit stronger than many other cryptocurrencies around the world. Nonetheless, we have reached a major inflection point and it looks like a short-term pullback is more likely than not going to be the case. The markets will continue to be volatile, so you do need to be cautious about your position size, but more often than not we are going to see traders look at this through the prism of a longer-term standpoint. After all, if Ethereum is going to turn around and show signs of life, it is possible that we will turn things around and see a major breakout. That could take a while, and I think what we have is a situation where people will be paying close attention to any little bit of a pullback as an opportunity to build a longer-term “buy-and-hold” scenario. We are in an area that could be thought of as an accumulation zone.
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