Ethereum at Long-Term Support. Buyers, Get Ready
Skerdian Meta • 1 min read
While Bitcoin has surged recently, cryptocurrencies have been retracing lower. But after a decent retrace, Ethereum is at a very important level.
As we mentioned in the midday brief, Bitcoin has gained nearly $3,000 in the last couple of days. But, the other altcoins are not following it. They have been sliding lower during this time, so it looks like Bitcoin is stealing the thunder from other digital currencies.
I’m not saying that Bitcoin is sucking up all the cash that was supposed to be thrown at other digital currencies, but it is having some effect on the rest of the crypto market. Ripple coin, Dash and Litecoin have been tumbling in the last couple of days.
This prior resistance is now turning into support
Ethereum has been sliding lower too and it is now facing a tough challenge on the daily chart. As you can see from the Ethereum chart, the area around the $400 level has been providing resistance this year and for a long time, it was a record high for this altcoin.
Right now, we are back at this level, which is supposed to turn into support. The sellers had a go at that level, but the price bounced back pretty quickly. That means that the buyers are gathered down there, waiting for a chance to go long.
Ethereum is about $15 higher now, which means 150 pips for this cryptocurrency. But, if it gets close to the $400 area again, I think that we will be persuaded to open a buy Ethereum signal, so hang around folks.