Ethereum markets rallied a bit during the trading session on Thursday only to find resistance at the $500 level. By doing so, we show that there is still plenty of noise above that can cause a lot of trouble. Ultimately, this is a market that should continue to be very bearish in the short term, perhaps reaching down to the $450 level. This is a market that I think continues to be a “sell the rallies” situation, unless of course we can break above the $500 level. If that happened, then the market could go much higher. If it does, that could change a lot of things. In the short term, I anticipate that we will probably continue to see sellers.
The Ethereum markets initially when sideways during the trading session on Thursday but found the 50 SMA to be resistive enough to turn the market back around. It looks as if the market is going to go down to the €400 level, and then perhaps a break down below there. I think that short-term rallies continue to be a major opportunity to start selling again, and if we can break down below the recent lows, the market is likely to go much lower, perhaps reaching down to the €350 level. I don’t have any interest in buying this market, at least not until we would break above the €450 level, which of course is very resistive based upon the previous support. Market memory should continue to push this market lower at that level. I find it telling that the market failed to hold gains when the Euro fell in the Forex markets.