#Ethereum initially rallied during the trading session on Tuesday, but then pulled back a bit to go looking for support at the $800 level underneath. We’ve seen buyers return from there, so it’s likely that the uptrend continues.
The Ethereum markets rallied significantly during the trading session on Tuesday, reaching as high as $875 above, but then pulled back towards the $800 level underneath. The 20 SMA in the middle of the Bollinger Band indicator on the hourly chart suggests that we are going to continue to see buyers. $800 level holiness support is a good sign as well, as it is a large, round, psychologically significant number. I think at this point we will probably go towards the highs again, perhaps the $900 level after that as it is a large, round, psychologically significant figure.
I believe in buying dips, and I think Ethereum will eventually go higher, but keep in mind that this time of year is typically very illiquid, as traders will be focusing on Christmas, and I cryptocurrencies. Volumes are thin, and another thing that continues to concern me about the cryptocurrency markets is that the most volume candles are all red. That is not a good sign, so we could see pullbacks going forward that gives us an opportunity to pick up value if you can hang on to the volatility that almost certainly seems likely to return. The $700 level underneath is massively supportive as well, so I look at the market as one that will offer value given enough time, but the question is can you hang on to the trade? By jumping in slowly and adding slowly, that’s probably there is a way to deal with a market that is running away to the upside over the last several months.