Ethereum markets fell a bit during the trading session on Thursday, reaching towards the $675 level, but then bounced enough to reach towards the 20 SMA on the Bollinger Band indicator. The hourly chart looks as if we are going to continue to grind in general, but we could drift as low as $600 as we are getting a little bit close to the overbought part of the stochastic oscillator. The $600 level should be massively supportive, so I think that should be a bit of a “floor” in the market. I think we would bounce from there, and it could be a nice buying opportunity. However, we could rally from here and reach towards the $775 level, which is the beginning of resistance towards the $800 level.
If we can break above the $800 level, that sends the Ethereum markets much higher, and I do expect to see that in January. In the meantime, I think it’s a lot of sideways market, perhaps short-term pullbacks offer buying opportunities in little bits and pieces so that you can anticipate the break out to the upside in a couple of weeks. However, I think you should be cautious, or quite frankly you could just sit on the sidelines and wait for volume to return. Volume in the Ethereum markets is almost nothing as we are between the 2 largest holidays of the year. I believe that it won’t be until the 2nd week of January that we start to see the markets move significantly with volume. I do anticipate a move to the upside, so adding slowly in building up on small dips might be a way to go, but keep in mind you may get a sudden flush in the short term, and will have to be able to deal with that type of noise.