The correction in Ethereum since the turn of the year has been nothing short of crazy. From early December 2017 ETH gained over 400% and has since retraced 70% of that whole move.
In early January Ethereum hit $1400 in a swift rally that can only be described as parabolic.
After hitting that high the reversal that followed was brutal. Within 4 days ETH dumped 50% on its holders, leaving many people holding bags who were buying into the previous weeks euphoric rise.
What’s next for ETH?
The good news is that 3 days ago Ethereum hit an important area on the chart. You can see below the congestion area from mid December was hit and immediately reacted back from.
This is a classic support test. A retrace which is searching for buyers. It certainly found them at $450.
The candle tells the whole story. A sharp move down to the support which found buyers and quickly retreated to close near the days open level.
This strength continued on with 3 positive days in succession.
The key levels now are certainly above the current ETH price. $700 is the major obstacle in our path.
If you look left across the $700 area you can see a bunch of lows which sit around that area. It might take a few attempts to get through but if it does then expect some new money to pour into crypto.
As we all know a lot of the ICO market is relying on Ethereum to keep its head above water. This is down to the huge amounts of tokens built into the Ethereum blockchain.
I’d say there are many investors who are hesitant to drop further funds into this market without a show of strength from ETH.
So come on Ethereum, let’s see that strength please.