- The Ethereum market opened Tuesday's trading session with a pullback, appearing to stumble momentarily before regaining its footing. In this evolving landscape, it seems we are in the process of constructing what resembles an ascending triangle formation.
- Nevertheless, looming on the horizon is a formidable barrier of resistance situated around the $2100 threshold, an area that commands our utmost attention.
- Should we manage to surmount this obstacle, the path ahead appears paved for a substantial ascent, with the market likely setting its sights on the $2500 level.
Amidst these fluctuations, it is my belief that the $1900 level will play a pivotal role as a robust support level during short-term pullbacks. Notably, the 50-Day EMA appears to be swiftly converging with this critical zone, potentially reinforcing its significance. It is essential to acknowledge that these cryptocurrency markets are characterized by a cacophony of activity, necessitating careful discernment as we endeavor to ascertain whether the market possesses the requisite momentum to forge ahead or if a more substantial retracement looms on the horizon, potentially leading us down to the 200-Day EMA.
Monetary Policy and Crypto
It is worth noting that the allure of cryptocurrencies appears to be gaining momentum as traders increasingly ponder the inevitability of central banks worldwide resorting to monetary policy adjustments. Indeed, it is evident that higher interest rates have proven detrimental to the cryptocurrency realm, a fact underscored by various scandals that have surfaced during periods of tight monetary policy. It now appears that we are gradually emerging from this conundrum, and should this trend persist, Ethereum stands poised to reap significant benefits. However, it is imperative to keep a watchful eye on Bitcoin, as it wields a pronounced "knock-on effect" on the entire cryptocurrency sphere, Ethereum included.
Ultimately, while the Ethereum market remains a magnet for investor interest, it is essential to acknowledge that we must navigate through a substantial degree of market exuberance following the recent rapid ascent. These intriguing dynamics will undoubtedly continue to unfold, prompting traders to exercise caution, conduct meticulous analysis, and stay attuned to developments that could shape the cryptocurrency landscape in the days and weeks to come.
Potential signal: Any pullback at this point is a situation where buyers seem to be willing to get involved. I will be a buyer near the $2025 level, with a stop at $1980. I am targeting the $2190 level.
Ready to trade ETH/USD? Here’s a list of some of the best crypto brokers to check out.