ETH/USD Forecast: Ethereum Pulls Back to Reach Below $4500

Christopher Lewis

Longer-term, a lot of experts are anticipating that the market will eventually get to the $8000 level, but it may take a little while before that happens.

Ethereum has pulled back a bit during the trading session on Friday, breaking below the $4500 level. It is probably worth noting that there was a general “risk off attitude” around the world during the day, so Ethereum fallen a bit should probably not be too much of a surprise. Furthermore, the market was a bit overextended to begin with, so a little bit of a pullback makes a certain amount of sense. This does not necessarily mean that I am looking to short this market, but I do think that it is only a matter of time before we see a certain amount of support.

Underneath, the $4000 level continues to be important, as it was a crucial resistance barrier previously, and therefore I think it should offer a little bit of “market memory” going forward. The market eventually will find plenty of buyers underneath, and therefore I think looking towards large, round, psychologically significant numbers makes quite a bit of sense. Furthermore, you also have to keep in mind that the 50 day EMA currently sits at $3655, and it certainly looks as if it is going to go looking towards the $4000 level. I think everything kind of comes together in the same area, and buyers get involved. Even if we were to break down below there, Ethereum is very much in a bullish market.

Furthermore, you have to pay close attention to the fact that the US dollar strengthened a bit during the trading session on Thursday, so it does make a certain amount of sense that the Ethereum market pulled back against the greenback. That being said though, this overextension probably bags for a little bit of a pullback, so I think that if we get a little bit of an opportunity to pick this market up on a dip, it allows a bit of an opportunity to get involved yet again. Quite frankly, this is a massive uptrend, and there is no way to short this market anytime soon. Ethereum is more likely than not to go looking towards $5000, and at this point it is probably only a matter of time before we get there. Longer-term, a lot of experts are anticipating that the market will eventually get to the $8000 level, but it may take a little while before that happens. The one thing that is always interesting of course is that the crypto markets can get there much quicker than you anticipate.

ETH/USD

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.