Initial Rally Only to Give Up Gains

There’s no scenario in which I’m willing to buy this market, due to the fact that there is so much negativity out there, and risk appetite is through the floor.

Ethereum markets initially tried to rally on Tuesday but gave back gains near the $1200 level as we continue to see a lot of negativity in the crypto market. Ultimately, this is a situation that you need to pay close attention to, as the crypto markets in general are on the precipice of a significant selloff. Ultimately, the $1000 level is going to be crucial for Ethereum, so pay close attention to whether or not we can stay above there. If we can, that would be the first positive sign that we have seen in crypto in a while.

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On a breakout to the upside, we could see an attempt to get to the 50-day EMA, which currently sits at roughly $1800. $1800 level is an area that has been important previously, as it had been supported. Now it should end up being resistance, but at this point, I think it’s a little ambitious to think that the market is going to make that move, but if we did, it should end up in a nice shorting opportunity. Quite frankly, the Ethereum market has been so noisy as of late and negative that I just don’t see how this thing changes.

If we break down below the lows of the last couple of days, then it’s possible that we could go down to the $800 level, perhaps even the $600 level. Fading rallies continue to be the best way forward, but if we do just simply roll over and fall apart, you cannot argue that as well. That being said, there’s no scenario in which I’m willing to buy this market, due to the fact that there is so much negativity out there, and risk appetite is through the floor. The market will continue to be difficult for buyers, and I think that we have a lot of concerns out there. When it comes to anything remotely close to being far out on the risk spectrum, crypto is way out there and you need to keep all of that in mind. The market has been in a downtrend for quite some time and should continue to be until the Federal Reserve changes its monetary policy, perhaps sometime late this summer, but the next two meetings are already promised to be rate hikes.