The cryptocurrency market started making a come back led by Bitcoin following its dip to $9,500. This has brought Ethereum up as well, but the appreciation stalled later on followed by a slight dip in the 24-hour gains.
Although it seemed like things were becoming negative again, Bitcoin and Ethereum trader Mohit Sorout says Ethereum is still fine as long as the price remains above $150.
On the other hand, a close below this price according to Sorout will be “goodnight” for Ethereum and investors may be on their way to losing significantly from their Ethereum investments.
A Break Below Will Necessitate Shorting
A close under $150 will be a bad move for investors and holders of Ethereum. However, it is not all bad as Sorout says shorting would still be an option.
Longing at such time, however, would be ruinous as the price direction will be uncertain and possibly in the negative direction causing a further dip to lower prices.
At the critical price, the bulls are assembling and sufficient assembly could bounce the second-largest cryptocurrency to higher levels.
If the price succeeds at reaching $235, it will be a clear buy for longs, the trader says. The best bet, therefore, is for Ethereum to stay well above the key $150 long enough for it to start moving higher towards $235.
Price Above $190 Already
The good thing is Ethereum has already gone way above $150 to $192. From here, investors can only hope that it moves upwards to the “clear buy” zone from which longs can be profitable.
If this goes well, this week may be a rewarding one for investors and holders. Otherwise, they may brace up for shorting at least in the short term.
Since Ethereum has been following Bitcoin’s price direction and Bitcoin is likely to rise with the launch of Bakkt approaching. Also as more institutional investors are coming in, Ethereum investors may still have an eventful week to look forward to.