Ethereum initially tried to rally on Wednesday, but then sank rather rapidly. We tested the $280 level for support, but on the hourly chart formed a nice-looking hammer off that level and started to rally again. As we approach the $300 level, and looks likely that the market will continue to go higher but may see a little bit of volatility due to the large, round, psychological significance of the number. However, we are in an uptrend longer-term, and Ethereum has enjoyed a rather impulsive move over the last couple of sessions. Those moves typically continue to see continuation, and that’s what I am assuming is about to happen. On a break above the $300 level, the market will more than likely reach towards the $315 level above. Once we break above there, becomes more of a “buy-and-hold” situation.
I think the best way to play this market is to simply buy the dips going forward, and at every time we get another one. That way you can build a large position as a bit of an investment. The Ethereum markets had been a bit quiet recently, but crypto currencies in general had seen a bit of a resurgence. Ultimately, the market should continue to grind its way to the upside but you will have to be a bit careful. If we break down below the $280 level, it’s likely that the market will drift down to the $260 level. However, this is very unlikely from what I see, and that being the case I think that the buyers will have their way with the Bitcoin market against the US dollar. Ethereum has a bit of catching up to do compared to the other crypto currencies, so I think we will see plenty of bullish pressure over the next several sessions.