The Ethereum markets continue to be very noisy, essentially making a big W pattern” on the 4-hour chart, but at this point I think it’s difficult to read too much into the last couple of sessions, as the volume would have been there. The Ethereum markets have lagged a bit over the last couple of sessions, but having said that it’s likely that the market will continue to go higher though, as crypto currencies in general look to be healthy. I think that if we can break above the $800 level, that is a very bullish sign, perhaps reaching towards the $1000 level above. I think the $1000 level is the goal for longer-term traders, but in the meantime, there is going to be a lot of noise.
The US dollar has been soft over the last several sessions, and perhaps that is what we are starting to see again. However, when you look at the volume on the bottom of the chart, the one thing that should stand out is that the most volume driven candles are red. This shows me that longer-term we have some serious issues in this market as we are starting to run out of conviction. That doesn’t mean we can’t rally from here, and I think we will but perhaps on the inner volume. That is a sign that we cannot hang on to the gains longer-term, and I think that is going to be a theme in the crypto currency space as perhaps we have gotten far too ahead of ourselves. After all, it wasn’t that long ago that the market was down at the $320 level, and these types of moves are completely unprecedented. In general, I believe that the market is overdone, as most crypto currency markets are. Expect very choppy and volatile conditions over the next several days.