Quick analysis on the Ethereum markets after another of healthy sell-offs for cryptos vs the US Dollar.
Ethereum experienced a brutal beating from the bears after $660 – $700 failed as near term support. The indicators are confirming the bearish trend that is painted by the red candles on the chart.
It is important to note that there was significant buying/selling volume around $550 – $650 and that could possibly signal a reversal in the market. However the bearish momentum is very strong right now and I would also advise traders to follow the trend.
I will put short term support around $500 – $550 and will keep an eye on the market action on those levels before going long on the market. Higher risk traders could be looking to trade the bounce, or go short should above mentioned support levels fail.
On the longer term it is important to note that support is around $380 and I would consider adding to long positions should we dip below above mentioned support and test the $400 zone.
Lets take a quick look at the performance of Ethereum against the Bitcoin market.
Looking at the chart vs Bitcoin we can see that the Ethereum bulls got a bit beaten and prices only found support around 0.075 btc, but there is some decent volume and we have to keep an eye on the price action to determine the next course of action.
Both indicators are confirming the bear trend on the shorter term, however the PPO indicator is showing us that there has been a change in momentum. This is the kind of setup higher risk traders might utilize when probing for bottoms in the market.
The safer option would be to follow the trend, which for me personally has now turned bearish. I will look towards consolidation above 0.08 btc for the bullish action. Safe trades.