Ethereum was relatively sideways during the session on Friday, reaching as high as $396, but also reaching as low as $383 level. Ultimately, this is a market that I think is calmed down, after an initial surge higher earlier in the week.
I believe that the market continues to grind sideways in general, as we don’t have any clear direction as to when we can pick up enough momentum to go higher. After all, the $400 level above is going to have a certain amount of psychological significance, so breaking above there should bring in quite a bit of buying pressure.
Once we do get above the $400 level, I believe we will go to the $425 level over the next several sessions. In the meantime, I think this is about the market trying to build up enough momentum to finally make that breakout.
I believe that the market is going to offer value given enough time, and we could go as low as $365 underneath. At that point, I would expect a lot of value hunters to come back into the market, and considering the way the market closed during the session on Friday, it is possible that we see a little bit more in the way of a pullback.
Either way, I am ignoring sell signals for the short term, and therefore I think given enough time we should continue to see the longer-term buyers jump in. I don’t necessarily like buying here either;I need to see some type of stability first before putting money to work.
After all, I believe this is a longer-term uptrend, so patience is needed to get this market right. I believe that we go much higher over the longer term, so there’s no need to rush into a trade.