Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

ETH/USD Forecast: Dangerously Close to Another Breakdown

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

I don’t think this is a scenario where you can take rallies very seriously.

Ethereum pulled back just a bit on Tuesday as we continue to see a lot of negativity out there. Ultimately, this is a market that I think given enough time will drop. The $1900 level offers a little bit of support, but the $2000 level is quite a bit more impressive. We have been falling for a while, and the fact that we have continued to build a bit of a descending triangle suggests that we are going much lower. The $1800 level is the next target.

Rallies at this point in time will be selling opportunities, and I just don’t see an opportunity to try and ride a move to the upside. Even if we were to rally, there is a significant barrier at $2100, followed by $2200. After that, you have to worry about the 50-day EMA which is at the psychologically and structurally important $2500 level. Ultimately, I believe that we will eventually find sellers and that at the first sign of exhaustion people will run away.

Crypto is a disaster at the moment, and there’s no reason to be looking to buy it. Even if it does stabilize a bit, you should have plenty of time to get involved and build up a bigger position. After all, trend changes take a while, they don’t happen out of the blue. Tightening central-bank policy has put a lot of upward pressure on the US dollar, as traders around the world are worried about risk appetite suddenly being wiped out. The crypto markets of course are rather far out on the risk spectrum, so you need a huge “risk-on market” for crypto to rally. Even Bitcoin has struggled, so I don’t think this is a scenario where you can take rallies very seriously.

There is a lot of chatter around when the upgrade on the Ethereum network gets finalized, but at this point in time that is almost like a running joke. Every time the developer says that there is a certain timeline, it gets pushed back. It’s as if the market is starting to run out of patience, in an environment that’s not going to be conducive for higher crypto prices to begin with. I fully anticipate that this market breaks down and goes looking to reach the $1600 level over the course of the next several weeks.

ETH/USD

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews