Ethereum markets fell against the US dollar during the trading over the weekend, which was due to increased governmental interference, and a hack in South Korea again. At this point, it’s difficult to get overly excited about crypto currencies, as we have seen so much in the way of bearish pressure over the longer-term. We have bounced from the $500 level, an area that of course has a significant amount of psychological importance as well as structural, but at this point it looks like more of a “dead cat bounce” than anything else. I believe that eventually we will see short-term exhaustion again, and then break down towards the $500 level. Once we get through there, the market unwinds drastically.
Ethereum also bounced against the Euro, but quite frankly the small bounce that we have had is small in comparison of the selloff of the weekend, and of course we have made a fresh, new low, which of course is a negative sign as well. I think at this point it’s likely that we will see exhaustion sooner rather than later, and at that point it’s likely that the market will eventually find more sellers, and of course at this point I believe that the $500 level above is massive resistance. If we break down below the $430 level underneath, then the market could extend down to the $400 level rather quickly. In general, this is a “sell the rallies” type of situation yet again. There is a lot of noise in this market, and most of it is negative.