The Ethereum markets broke down a bit during the day on Wednesday, losing another 3% as I record this. I think that the market has plenty of resistance at the $500 level above, and I think if we can stay below that level, it’s likely that sellers will continue to jump into this market. The 50 SMA on the hourly chart seems to be offering a significant amount of psychological resistance, and therefore I think that it is only a matter time before the sellers return if we get close to that area. I believe that the $450 level underneath is going to be a bit of psychological support, but quite frankly I think that gets broken as well.
Ethereum fell against the Euro as well, reaching down to the €400 level, a large, round, psychologically significant number. I think that the market breaking down below that level should send this market down to the €350 level next, which is the next psychologically important level. If we rally from here, I think the 50 SMA will continue to offer resistance as well, not to mention the €450 level above that. Overall, this is a market that continues offer plenty of selling opportunities if you are patient enough to wait for signs of exhaustion. I don’t have any interest in buying this market, at least not until we break above the €500 level above, which seems to be very unlikely right now as we have such a straightforward move lower and a relentless grind to the downside.