Ethereum price initially rallIed during the day on Wednesday, reaching towards the $325 handle. That’s an area of slight resistance, so a pullback from there should not be a huge surprise.
However, I think there is plenty of support underneath, and I think that it’s likely that the buyers will return given enough time. After all, we have seen a very volatile and impulsive market, so I think if we can break above the $325 level, it should send this market looking to the top of the impulsivity, the $345 level.
Also, the US dollar has been soft as of late, and that continues to help cryptocurrencies in general.
In fact, Ethereum has been one of the best performers lately, showing quite a bit of volatility and resiliency. I think that there is a certain amount of psychological support at the $300 level, as well as structural support. I continue to think that buying the bounce in the market should be the best way to go going forward, as we should reach towards the $350 level above.
Ultimately, the volatility continues to offer plenty of opportunities, and it should be looked at as such.
I believe that in the crypto currencies overall should warrant having smaller positions, as the volatility could be very expensive if you are not careful.
However, it’s obvious that we have a large amount of bullish pressure overall, so I have no interest in shorting this market as I believe that there is a bit of a permanent bit in this market.
If we break down below the $300 level, then I would have to rethink things but until then I believe that it’s only a matter of time before the buyers come back looking for value yet again. That’s been the way this market has acted for some time now, and essentially nothing is changed.