The Ethereum market initially rally during the trading session on Thursday but has given back gains to show signs of hesitation. By doing so, the market is likely to continue struggling right around the 200 Day EMA, which is also right on top of the 50 Day EMA. In other words, this is a market that does not understand where it wants to be at the moment. The $3000 level should continue to be an area of interest going forward, as it is a large, round, psychologically significant figure, and an area where we have seen buyers previously.
The Monday hammer is an area that you need to pay close attention to because it shows that the buyers were willing to step in and defend Ethereum. If we were to break down below the bottom of that candlestick, it would show a capitulation of the buyers. In that scenario, the market could send the market down to the $2750 level, and then possibly even the $2500 level. The $2500 level is an area that has been important more than once, so it is worth paying close attention to that area. If Ethereum breaks down below the $2500 level, then it is likely that we would see quite a bit of selling pressure to reach the $2000 level next.
On the upside, if we were to break above the highs of the last couple of candlesticks, that opens up a move to the $3250 level, and then the $3500 level. The $3500 level is an area that has been important previously as it was where the sellers came in to push Ethereum back down, so taking that would obviously be a very bullish sign. As things stand right now, this is a market that looks as if the buyers are trying to step in and support Ethereum after a dip, so the next couple of candlesticks could be very important. I do not necessarily believe that this is a market that is quite ready to make a bigger move, once it does it should be relatively obvious as to where we are going and how it is going to play out. With this, I am simply waiting for some type of larger candlestick to give us an idea as to where we should be trading in which direction to use.