Etherium Analysis (ETH/USD) August 2, 2017
Ethereum has been very volatile during the session on Tuesday, but the one overriding attitude seems to be bullish behavior. The market looks likely to see the $210 region as the beginning of significant support, due to the fact that it was resistance several sessions ago. It was very reliable resistance, so it should now be reliable support as we have broken above that level twice. Ethereum overall looks to be picking up momentum, as the Bollinger Bands have started to shift to the upside and spread a bit, showing that there is more momentum and volatility picking up. Overall, one of the most important aspects of this chart is knowing that the United States dollar continues to slump in general. Forex markets tell us that traders are starting to favor the Japanese yen yet again, which is a sign of fear when it comes to the US dollar. This lines up perfectly for something like Ethereum, as it is a “anti-dollar” play.
I believe that buying short-term dips will continue to pay dividends, and that we should go looking for the $225 level above. A break above there should send this market looking for the $240 level. I would not be concerned about a pullback until we break down below the $200 level, not only because it was important recently, but it also has a certain amount of psychological importance build into the large, round, psychological aspect of the figure. I remain bullish of Ethereum, least and the short-term, but recognize that it will probably be choppy to the upside. This offers an opportunity to slowly add to your position as the trade works out in your favor, which is probably one of my favorite strategies anyways, as it allows you to build up a large position over time.