Ethereum did very little during the day on Friday, as we continue to dance around the $300 level. The quieting of the market doesn’t concern me much though, because the overall uptrend is still very much intact. Until we break down below the $280 level, I believe that the buyers are still very much in control. That is the level that I think shows the most amount of support. Longer-term, I anticipate that the market is trying to build up enough momentum to go much higher, perhaps reaching towards the $315 level and beyond. I believe that a break above there should send this market much higher, and more of a “buy-and-hold” type of move. Pullbacks continue to offer value, as long as we can stay above that vital important support region.
I believe in adding to my Ethereum position slowly, as the longer-term uptrend will dictate much larger move. However, we have seen quite a bit of volatility in the crypto currency markets as of late, and that of course invites caution. Because of this, adding as the trade works out in your favor is probably the best way to go, as it’s an easier way to ride out the certain volatility that we will see. With the geopolitical issues around the world, it’s likely that we will continue to see volatility in the US dollar, and that of course has an effect in this market. Once we do breakout to the upside, I believe that adding rapidly will be the best play as this market tends to move very impulsively. Because of this, patience will be needed, but should reward traders who can show it. If we did breakdown below the $280 level, I believe we would look at a market that would enter an accumulation phase.