Ethereum markets broke out during the session on Thursday, clearing the $700 level, and more importantly the top of an ascending triangle. Now that we have done that, we should move towards the $800 level based upon the measurement of the triangle. I think that the upward momentum is rather significant, so buying dips should continue to be a good way to play this market. I don’t have any interest in shorting this market, as we have seen so much in the way of support previously, and of course the ascending triangle will have a boatload of orders in that pattern just waiting to list pricing.
Ethereum also broke out against the Euro, and now looks likely to go towards the €700 level above, perhaps €680. This is the same pattern as we see against the US dollar, and as per usual the market is moving in concert. With the EUR being so soft lately, it makes sense that this pair may outperform the ETH/USD pair. Certainly, selling isn’t something that you should be doing, and I think that there is a massive amount of support near the €580 level, if we could even pull back to that area. I anticipate that the €600 level is also supportive, based upon the clustering that we have seen.
It’s possible that Ethereum is going to lead the way for Bitcoin to break out finally. Generally, one of these markets will lift the other, so we may be seeing the beginning of a major breakout in crypto currencies again.