Ethereum tried to rally during the day on Friday against the US dollar, but struggled at the $74 level. By pulling back the way it has, we have formed a shooting star which is a very negative technical signal. However, I see a significant amount of support below at the $60 level, so it’s likely that the buyers will return. A breakdown below the bottom of the candle signals that sellers are stepping back into the market. However, the longer-term trend is most certainly to the upside so waiting for lower levels to go long will be the way to trade this market.
Ethereum rallied against Bitcoin as well, but also found resistance above, turning a positive market into a shooting star. Because of this, I anticipate that this market will pull back but I’m looking to buy this pair somewhere just above the 0.04 level. Alternately, a break above the top of the candle would be a very bullish move, perhaps sending this market to the 0.06 level after that.
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