Ethereum Price Analysis (ETH/USD) August 30, 2017
Ethereum price continues to look bullish during the Tuesday session, as we reached towards the $370 level. We did pull back a little bit, but quite frankly I think that is simple exhaustion for the day.
Given enough time, I expect to see buyers jump back into this market and push it towards the $375 level, and that of course the $400 level which would be the next psychologically significant number. I also recognize that the $335 level underneath has offered perfect support after being perfect resistance.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
With this in mind, I am a buyer of Ethereum every time it dips, and believe that the longer-term outlook for the crypto currency is very strong indeed.
I think it’s simply a matter of adding a little bit to your core position every time this market dips. These types of uptrends don’t come every day, as although obvious, they are very gentle.
This means that you should not have too many people exiting at the same time. This makes for a nice long-term playing, and this is where a majority of your profits will probably come from. This being the case, I’m adding and simply holding onto my core position as it gains both size and value. I believe now that the $335 level is the “floor” in the market, and by adding slowly, I can withstand the occasional pullback without much concern.
When a chart looks like this, it becomes a longer-term investment very quickly. These are some of the best trends to play, because it gives you an opportunity to gradually build and therefore not have too much psychological pressure in your position.
If the market broke below the $335 level, I believe there is more than enough support below to keep the market afloat, but at that point I would step away and let the market prove itself to me. However, my base case scenario is that we continue to go higher and will not see a breakdown of that level.