ETH/USD Forecast: Ethereum Reaches Down Again
Date
2/14/2022 12:32:46 PM
(MENAFN- Daily Forex) Ethereum fell on Friday to reach down towards the $3000 level. This is an area that is a large, round, psychologically significant figure, and should attract a certain amount of attention. That being said, if we break down below this level then we have much further downside ahead of us. Breaking down below the $3000 level almost certainly opens up the possibility of a move towards the $2750 level, maybe even the $2500 level after that.
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Ethereum is the second biggest crypto market out there, so it may hold up better than some of the others. Nonetheless, there are so many concerns right now about Federal Reserve monetary policy and geopolitical risks that most money is running towards safety, not crypto. I think that continues to be an issue at this point, and it is worth noting that we did pull back a bit from the 200 day EMA. The 200 day EMA obviously be in a technical indicator that a lot of longer-term traders pay close attention to.
We have had a nice rally as of late but falling from this area makes a certain amount of technical sense, due to the fact that it was where we sold off from previously. If we continue from here to the downside, this would just be a continuation of the overall downtrend that we had been in for quite some time. I do like Ethereum from a longer-term standpoint, and I would love to see it fall apart so that I can buy it at extraordinarily low levels. That could give you a huge opportunity to do a bit of accumulating for the next move higher.
While crypto enthusiasts like to deny this, the reality is that crypto moves right along with risk appetite and the overall economy. The economy in the United States looks to be heading towards a recession, and I suppose the same thing could be said about most of them around the world. If that is going to be the case, money does not look for risky assets in that scenario and we could have a bit of negative pressure ahead of us before Ethereum and other crypto markets in general. That being said, this could end up being a nice opportunity if we do in fact get a 'crypto winter.” You will notice how I did not bring up the positive move in this report, because I do not see it happening in the short term.
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