(MENAFN- Daily Forex) The Ethereum market was relatively quiet during the Monday session, after spending most of the weekend selling off. After all, Ethereum has already seen“The Merge” come and go, and therefore it's likely that we will continue to see this through the prism of a market that's going to test a major support level underneath. The $1200 level underneath will continue to be crucial, so pay close attention to it as it is the top of an overall consolidation area that started at the $900 level.
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Now that we have seen a lot of negative behavior, it's likely that we have seen the end of the bullish run. After all, we have already priced into the market the idea that the upgrade was going to go, so I think at this point we need to see some type of bullish fundamental news to get this market moving. We just don't have it at the moment, so I think we've got a scenario where the market will continue to be very noisy, but I do think that we have a lot of trouble ahead. The US dollar continues to act like a wrecking ball against almost everything, so Ethereum dropping should not be a huge surprise. As long as the Federal Reserve is willing to tighten monetary policy , it does make quite a bit of sense that we would see this market struggle to attract inflows.Noteworthy:
- Remember, Ethereum is pretty far out on the risk spectrum, so institutional money will be cautious, to say the least.
- Even if we were to rally, I anticipate that the 50-Day EMA is going to offer a significant amount of resistance near the $1600 level.
- Because of this, Ethereum is more likely than not going to be a situation where we are looking for the Federal Reserve to come and bail it out. This is a bit ironic, but that's the case for crypto in general right now.
With this being the case, the market is probably going to remain very noisy, and I do think that eventually you get an opportunity to pick up Ethereum at much lower levels. In fact, I would not be surprised at all to see this market drop down to the $400 level. That's where we took off from previously, and it would be a huge turnaround in this market overall.
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