The Ethereum (ETH-X) market initially tried to rally on Monday, but then ended up falling back towards the 200-day EMA yet again. The 200 day EMA sits just below the $3200 level, which is an area that I think a lot of people will pay attention to. Keep in mind that the 200 day EMA is not like a brick wall, it is essentially an area of interest. Because of this, even if we do break down below the 200 day EMA, I am paying closer attention to the $3000 level, which is an area that is going to be supportive, not only due to the fact that we have bounced from there, but the fact that we have a certain amount of psychology attached to a round figure like that.

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When you look to the left, the September area had seen a lot of consolidation in that area as well, so it does make a lot of sense that we would stall at this area as far as selling pressure is concerned. Full disclosure: I am a longer-term holder of Ethereum, so I do not worry about the micro movements that we get from day-to-day. I do believe that the $3000 level is important from a psychological standpoint, and the fact that the 61.8% Fibonacci retracement level sits right there as well.

To the upside, the $3400 level has offered a little bit of resistance, so it will be interesting to see whether or not that can hold, so if we were to break above that level it is very likely that we will go looking towards the $3500 level almost immediately, and then perhaps the 50 day EMA at the $3788 area. That is basically where we had sold off from drastically, so it makes a lot of sense that we would see this area be targeted and cause some issues for Ethereum. Longer term, I do believe that the Ethereum 2.0 rollout will be a major factor as to where we go overall, but if we broke down below the lows made about a week ago, that could open up even more fresh selling, which I will use to pick up more because the outlook for 2022 is very strong for this particular coin.

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