ETH/USD Forecast: Hovering Just Below The 50-Day EMA
(MENAFN- Daily Forex) The Ethereum market has gone back and forth on Thursday, essentially“chopping wood” just below the crucial 50-Day EMA. The market is more likely than not going to continue to see a lot of noisy behavior, but I think a lot of the Polish pressure in the Ethereum market is just about over with. This does make a certain amount of sense because everybody out there knows about the merger coming, and that news has already been baked into the price. Unfortunately, a lot of retail traders will continue to buy this market as we are getting close to the actual event. Institutional money has already been in and out of this market.
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Ethereum continues to see the $1500 level as important, but I think at this point if we break down below the lows from a couple of days ago, it continues the downward pressure to the $1200 level, possibly even down to the $1000 level. Because of this, this is a market that I think a lot of people will be looking to short this market on signs of exhaustion.Focusing in the Long Term
- On the upside, if we can break above the $1700 level, then it's possible that the market could go looking through the $2000 level.
- The $2000 level also features the 200-Day EMA as well as the previous action, and of course, the fact that it is a large, round, psychologically significant figure.
- Obviously, if we break above that level, then there would be a lot of headline noise and it's possible that we could go much higher.
On the other hand, if we were to break down below the $1000 level, then the market could unwind quite drastically. This would send Ethereum back down to the $400 level, where we had taken off previously. That obviously would be a complete round trip, and therefore it's likely that the market will see a lot of“market memory” in that area, and I think a lot of people would start to scale and for longer-term trade, I know I would. At that point, I would start accumulating Ethereum over the longer term, and therefore would hope to get a huge position over the course of the next couple of years. Whether or not we get that breakdown is a completely different question, but it still looks very possible.
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