Skip to main content

[Chart Of The Week] Ethereum Approaches Key Levels

May 8, 2018

When I go through all of the crypto currencies, the healthiest one and the only one already pressing up against key resistance is Ethereum. You guys know I look for relative strength and positive momentum. Ethereum is showing characteristics of both right now.

Today I want to take a look at what we're seeing in Ether, as the great Nasir Jones would refer to it. He's one of our generations greatest poets and I think what we're seeing in the Ether right now is pure poetry.

This is a chart of Ethereum right now approaching the key 860 level. This not only represents the 261.8% extension of the entire June-November 2017 consolidation, but also resistance in December, support in January and trouble throughout February and March before ultimately rolling over:

Notice how that roll over took Ether down to to successfully retest that entire base going back to last summer. I think that's healthy. Prices below 860, however, less healthy. This is a range bound market for now, until we break out above that.

Our last long trade in Ether had been to be long if we're above 860 with a target above 1300. When this was hit in January, it's been a wait and see game ever since. After all of this consolidation, I think that same trade is in order once again.

We want to be long Ethereum if we're above 860 and neutral if we're below it. I think there is way too much opportunity cost to be involved below overhead supply. If we're above 860, then a long trade is best with a target back up near 1300. After that, we'll see. I think we can certainly get to 2000, which would be the 685.4% extension of the 2017 consolidation, but for now it makes sense to take profits near 1300.

Premium Members log in here for List of Crypto Currencies with risk levels and price targets

If you're not already a member, feel free to start a risk free trial and get access to all of our research.

Cheers,

JC