The ETH/USD has pulled back during the session on Monday, as we continue to see the Ethereum market consolidate between the 200-Day EMA underneath and the $1700 level above. As we have seen the market go back and forth over the last couple of weeks, it’s obvious that we have to have some type of consolidation rectangle going on, and therefore you need to see that broken out.
If we break above the $1700 level, then I think you have a pretty quick shot to the $1800 level. After that, then I don’t see much-causing issues between there and the $2000 level, which would obviously be very bullish. However, Ethereum has not behaved well even though the Shanghai upgrade is here. It’s not to say that it’s been very bearish, it's just that it hasn’t been very excitable. This is mainly due to the fact that Ethereum needs a lot of investment, which means it needs a lot of cheap and easy money. The market continues to be very noisy, but I do think that we are about to get a big move.
I Don’t See How This Market Takes Off
If we break down below the 200-Day EMA, then I fully anticipate that this market goes looking to the $1400 level, perhaps even the $1200 level on some type of big move. Ultimately, I think Ethereum needs crypto, in general, to do quite well, because it does not operate in a vacuum. In the next day or 2, I would fully anticipate that we stay in this little rectangle, so if you are a short-term trader, you may take advantage of that. To avoid high gas fees or exchange issues, it’s probably best to use the CFD market if you have that ability.
Nonetheless, I just don’t see crypto taking off in this environment unless of course Jerome Powell shocks the markets at the end of the day on Wednesday and suggests that the Federal Reserve is not only done raising rates but is going to start to loosen monetary policy. We are nowhere near that, so I just don’t see how this takes off. However, as soon as the Federal Reserve looks likely to change its monetary policy, I’ll be buying a ton of crypto, mainly Ethereum and Bitcoin. That would be the beginning of the next major uptrend.
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