- The ETH/USD markets have been quiet during the Thursday session, gaining over 1% but staying within the tight range that we have been in.
- The 50-Day EMA currently sits at the $1475 level and is dropping, but it is relatively flat, suggesting that there is just no momentum to be had.
- Ultimately, this is a market that is waiting for some type of catalyst to go higher, because now we have gotten through the upgrade, there really is not much out there to drive the value of Ethereum higher.
- After all, the network should in theory pick up quite a bit of usage. However, this is a situation where the market is more likely than not to wait for external influences.
The number one external influence that I would be talking about is the Federal Reserve. After all, losing money is needed for people to take risks with extraordinarily speculative investments, which is exactly what Ethereum and the rest of crypto are. After all, even though the network is picking up some adoption, it’s not the same thing as investing in something like Walmart, where you have used, and you understand exactly what it is going to offer you, and of course, whether there are going to be any profits.
The market Continues to be Noisy
When you look at the start, you can see that we have been bouncing around between roughly $1200 and $1400, but when you look to the far left, you can see there had previously been a major consolidation area between the $900 level in the bottom and the $1200 level on the top. That entire area is going to be supportive of the market, but it does not mean that we can’t break down below there. If we were to drop below the $900 level, all hell would break loose and Ethereum would probably drop to the $400 level.
If we were to take off to the upside, at the very least we need to break above the $1600 level to get serious about any type of upward momentum. The market continues to be noisy to say the least, and I think at this point what we are hoping for is some type of big breakdown so we can start to accumulate for the next major bullish run. Until then, looking for value is the only thing you can do.
Ready to trade our ETH/USD trading forecast online? We’ve made a list of the best Forex crypto brokers worth trading with.