Ethereum rallied slightly against the US dollar during the trading session on Thursday as the US dollar was hit by a lower than anticipated CPI figures. The $780 level above offers resistance, and I think if we can break above there we will probably test $800 next, followed very quickly by $840. I also recognize that there is a bit of a “floor” at the $700 level, so it’s very possible that we may pull back in the meantime to build up enough momentum to finally go higher. It’s not until we clear the $700 area that I would be concerned about a move lower. In fact, I have a sell rating just below $680.
Ethereum also rallied against the common currency, reaching towards the €650 level. That’s an area that has a bit of resistance, and if we can break above there we will test the €660 level next, followed by €690. I do think that there’s plenty of support underneath, but we may need to pull back to build up the necessary momentum over here as well. In general, this is a market that has been basing for some time, and the slow, gentle grind higher has been exactly what traders need to see to build up confidence in a rally.