The market has gone back and forth during the trading session and the previous week, and it shows that there’s just no interest in trying to put a lot of money into this market.
- Ethereum has rallied ever so slightly during the trading session on Monday, gaining 75 basis points.
- We are currently sitting below the 50-Day EMA, and that suggests that there is still a bit of dynamic resistance.
- There’s no real reason for Ethereum to suddenly take off because the idea is that the merchant was going to be a major event, but everybody already knows this.
The size of the candlestick shows just how little interest there is now, and of course, volume is down. The market currently sits just below the $1600 level, which is also where the moving average sets. The market has gone back and forth during the trading session and the previous week, and it shows that there’s just no interest in trying to put a lot of money into this market.
Waiting for the Merge
If we were to break above the 50-Day EMA, then we need to test the $1750 level. The $1750 level is an area that has been influential a couple of times in the past, so it does make a certain amount of sense that we would see a reaction in that region. If we were to break above there, then it opens the possibility of a move to the $2000 level. The $2000 level has a lot of psychology attached to it, and the 200-Day EMA sits just above there and is sloping lower. In other words, it’s very likely that $2000 will cause a bit of a headache for traders, and therefore it’s likely that we will see a big fight at that point. Anything beyond those 2 levels would be a very bullish sign, and the beginning of a major bullish run higher.
I would postulate that it is much more likely that we will see negative news about the merge. Either the merge works, and Ethereum starts to see more traffic, which has likely already been priced in, or the merge fails, and some type of glitch appears. In that scenario, it’s likely that Ethereum will tumble quite drastically. If we break down below the most recent lows, then it opens a move down to the $1250 level. At this point, there is a significant amount of noise down to the $1000 level. A breakdown below the $1000 level opens the floodgates.
Ready to trade our Ethereum prediction today? Here are the best MT4 crypto brokers to choose from.