Ethereum Price Analysis (ETH/USD) August 24, 2017
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.
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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.