ETH/USD Forecast: Continues To Look As If It Has No Momentum
(MENAFN- Daily Forex) The Ethereum market has done very little during the training session on Friday, as we continue to see the $1600 level offer quite a bit of resistance . Furthermore, the market is seemingly attracted to the $1500 level, even though the merge is coming. It should be noted that most people still buying based upon the merge are retail traders, and institutional traders are already starting to take profits from that being priced in.
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This is not to say that Ethereum cannot go higher, of course it can. It is probably only a matter of time before we get a little bit of a pullback to offer some value. Furthermore, monetary policy continues to be tight in the United States, so it does make sense that a lot of risk appetite will be taken out of the crypto market. In other words, most institutional investors will not be bothered trading some of these more eccentric markets. A lot of them are too busy chasing bonds.Waiting for a Better Price to Enter
- This leaves the retail market to pick up the ball. That's not a good side to be on, because there is enough institutional money out there that retail no longer has that type of momentum causing volume.
- While I am bullish on Ethereum over the longer term, I believe that you will get a much better price to enter from. The $1200 level underneath is potential support, as it was previous resistance, just as the $1000 level will be.
- If we were to break down below the $1000 level, then we could drop all the way to the $400 level.
If we did in fact drop to the $400 level, it's likely that we will more likely than not see a massive accumulation possibility. Keep in mind that the area is where we took off from previously, and as a result, it's likely that we could see a lot of interest in the market at that area. In fact, I would start to build up a huge position for a longer-term trade, or even an investment. Ultimately, I don't have any real interest in buying Ethereum now, at least not until risk appetite changes in the markets overall. Until then, crypto is not a place to be.
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