- The ETH/USD market has been very quiet on Thursday, even though there is a lot of excitement building about the upgrade coming.
- After all, “The Merge” is grabbing all the headlines, and therefore it makes sense that a lot of people will be looking at this as a bullish market.
- The market is very likely to continue facing a lot of trouble just above, especially near the $2000 level as it is so psychologically important
Underneath, the $1500 level should be supportive, so it’ll be interesting to see how things play out in that general vicinity. If we were to break down below the $1500 level, we could see Ethereum drop rather hard. In that scenario, I have Ethereum dropping down to the $1200 level. Keep in mind that there was a lot of noise underneath the $1200 level that extends down to the $900 level. In other words, we could probably see a bit of support and buying pressure in that area. However, if we were to break through that level, the bottom will fall out. I don’t know necessarily that Ethereum will see this, but it is something that’s possible considering that the risk appetite right now is just not good.
Not a Currency
You should keep in mind that Ethereum is first and foremost a financial asset. I understand its utility of it, and I also understand that it probably has a strong future. However, institutions are trading it now, and they treat it as a financial instrument. The big money that moves the ETH/USD is not the retail sector anymore, and therefore it’s going to behave more like a mature asset. This is good and bad news because the days of massive 20% gains are long gone, but at the same time, the days of 20% losses should be in the rearview mirror as well.
With that being said, I do like it there in long term, but I would love to see a little bit more downward pressure and a little bit more value to get involved. We have to ask ourselves whether or not the area just below the $1200 level was the end of the bearish market, or if it was simply the beginning of a bear market bounce. I suspect we will know the answer to that question in the next couple of weeks.
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