ETH/USD Forecast: Falls With The USD Strength On Tuesday
Date
9/14/2022 2:18:49 PM
(MENAFN- Daily Forex)
- Ethereum has gotten hammered for over 7% during the trading session on Tuesday, as the US dollar spiked. Anybody banking on “The Merge” is about to lose a lot of money.
- Unfortunately, I've seen a lot of retail traders talk about how they are going to make all this money once it goes live, but at this point, everybody knows that it's coming.
- In fact, the only way that it's going to move the market in the short term is if there's some type of glitch or failure. And that of course will send the theory and spiral lower.
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It may not matter though. Because risk appetite is being eviscerated as I speak, with the US dollar rally based upon CPI numbers coming out at twice the rate anticipated. This of course is a situation where you would have a lot of concerns, and therefore people will be dumping anything related to a“risk on rally.” With that being the case, Ethereum has nowhere to go but down, and the fact that we have sliced through the 50-Day EMA again shows that the recent rally is probably not long for this world.Waiting for a“Buy-and-Hold” Situation
Breaking below the $1500 level will be the next milestone, opening the possibility of a move down to the $1200 level. At the $1200 level, we have a major area of interest that extends down to $900. If we eventually break through that area, Ethereum could get absolutely hammered, sending it down to $400.
I don't say this as a prophet of doom, I say this as a technical analyst and somebody who is very aware of the fundamental situation with the global economic system. However, what I will be doing if we do in fact break down that drastically is buying as much Ethereum as I possibly can, therefore building up a huge position. I feel the same way about Bitcoin, that they are not going to zero, but they are going to see a massive correction yet again. Eventually, this is going to turn into a“buy-and-hold” type of situation, but we are nowhere near that now therefore I think you need to simply look for signs of stability longer term. Short-term, it's going to be easier to short this market than by it.
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