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.
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