Ethereum initially found its way towards the $540 level, but then found a significant amount of bearish pressure to turn things around and reach towards the $500 level. I think that the market will continue to go little bit lower from here, perhaps down to the $480 level. This is a market that should be very noisy in general, and I think that a pullback is necessary after the extraordinarily bullish move that we have had. I believe that selling rallies will probably be what most traders do for the next couple of sessions. However, if we can break above the $550 level, we are likely to continue to go towards the $600 level after that.
Ethereum markets also rolled over against the Euro, as the €440 level has been a bit too much in the way of resistance. By rolling over the way we have, it looks like we will go down to the €400 level, and then perhaps even lower than that. I suspect that there is a significant amount of support near the €350 level underneath though, so I don’t think we go down much farther than that. The alternate scenario is that we continue to go back and forth and eventually break above the €450 level, which would be a very bullish sign and could send the market looking towards the €500 level. Expect volatility, but that’s nothing new with the crypto currency markets, as they have been horrific when it comes to that as of late. Over the last couple of weeks though, we are starting to see signs of stability for the longer-term.