- Ethereum is going sideways during the trading session here on Wednesday. So, it’s interesting. I think we are in the midst of at least trying to find some type of floor and it is worth noting that at least Bitcoin is somewhat stable.
- So that might be something to consider. But at this point in time, Ethereum looks like dead money. Now that’s not to say that if you have a longer timeframe, that you can’t take advantage of what looks like a market that’s trying to find its floor. After all, it’s not a wild thought to think maybe in the next year or two that Ethereum might trade all the way back up to $4,000 again.
- We just don’t know, but the general situation you find crypto in most of the time is that it makes these wild swings. We could drop from here and find ourselves down towards the $1,200 level.
Last Week’s Candle
But last week’s candlestick was a perfect hammer. So, it’ll be interesting to see how that plays out. Volume did spike last week as we found buyer. So, I think that is something worth paying attention to as well. If we can break above the $1,600 level, that at least breaks structure to the upside. And it gives you a little bit of hope. All things being equal though, I think this is a situation where Ethereum very well could be a nice longer term value play, but it’s an investment. It’s not a trade to the short side; you could enter at least short Ethereum if it breaks down below the lows of last week. But you are very late in this trade. Ethereum, of course, is the backbone for a lot of other digital assets. So that does help. This is a play on the entire alternative coin space. It’s not just a theory. But as long as there’s a major risk off attitude out there in financial markets, I do think Ethereum lags. Again, this is the thought of somebody who might want to buy it and sell it in a year or two. This is much like the last couple of meltdowns that we saw in crypto.
Ready to trade Ethereum? Here are the best MT4 crypto brokers to choose from.
