Ethereum Forecast Video for 05.12.23
Ethereum Technical Analysis
Ethereum has launched itself straight up in the air during the early hours on Monday as we continue to see traders bet on the idea of the Federal Reserve cutting interest rates by the end of March. Ultimately, this is a market that I think continues to see a lot of upward pressure due to the fact that the market becomes very sensitive to interest rates from time to time, and right now it looks like everybody is trying to price in the idea that the Federal Reserve it’s done hiking. If that’s going to be the case, then it allows “hot money” to start flowing into crypto.
Ethereum gets help due to traders looking for higher returns, and they only feel comfortable taking higher returns when the “risk-free rate” is lower. While bonds still offer an attractive yield, the reality is that we have a downward trajectory in the shields, so money is starting to try to flow into places like crypto. Underneath, I see the $2100 level as a major area of previous resistance, and it should be an area of significant support.
A little bit of “market memory” could come into play here, so at this point I think you are looking for dips to buy value. That being said, if you are okay with taking about a $250 risk per coin, then I’m more bullish than bearish, and do think that it’s probably only a matter of time before the buyers return and therefore I don’t have any interest in shorting Ethereum, unless of course we see some type of major turnaround and crypto altogether.
The $1900 level underneath is an area that previously had been support, so breaking that would be a major breach of trust in this market. At that point, then I think the overall trend could start to change. As things stand at the moment though, it certainly looks as if the buyers are in control so I look at any dip at this point in time as a potential bargain and I believe that Ethereum will eventually reach the $2500 level above.
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This article was originally posted on FX Empire
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