ETH/USD Forecast: Pulls Back in Quiet Trading

Ethereum has pulled back a bit during the trading session on Tuesday as we continue to see a lot of lackluster interest in the crypto markets. Because of this, it does make a certain amount of sense that we would see Ethereum do very little. After all, we are in the midst of a “crypto winter”, which is when crypto essentially does nothing. At this point, there’s no reason to think that this changes anytime soon, which has been especially clear considering that even the “merge” could not keep Ethereum bid. 

The 50-Day EMA sits just above and is starting to drop, so it does suggest that perhaps we will continue have a bit of a “soft ceiling” above. Any move towards that area opens up the possibility of selling pressure, as gains in Ethereum will be limited. Ironically, despite the fact that cryptocurrency is supposed to operate outside of the “normal financial sphere”, most crypto traders are waiting for the Federal Reserve to loosen monetary policy, whether they know that or not. This is mainly due to the fact that risk appetite needs to be relatively strong in order for people to go headfirst into the crypto market as it is so volatile. 

Think of it this way, when institutional money goes into a new asset, it turns out asset into a traditional one. While I would not go so far as to say that Ethereum is a traditional asset yet, it is heading in that direction. In other words, it is going to need a lot of the same factors that other places in the financial world will. At this point, any rally looks as if it’s going to be a selling opportunity, and if you have the ability to trade the CFD market, it’ll be much easier to short Ethereum. 

  • If we break down from here, the $1000 level could offer support, but a breakdown below that level then opens up the possibility of a move down to the $400 level over the longer term.
  • That’s where the last bull market started from, so does make a lot of sense that we may do a complete “round-trip” in that scenario.
  • In that area, I believe that there will be a lot of people willing to build up a larger long-term” buy-and-hold” type of position. 

Ready to trade our daily Forex forecast? Here’s a list of some of the best Forex trading platforms to check out. 

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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.

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