ETH/USD Forecast: Ethereum Looks Likely To Break Out
Date
2/20/2023 9:06:58 PM
(MENAFN- Daily Forex) Ethereum has rallied significantly during the course of the trading session on Friday, testing the top of the overall resistance barrier from the consolidation area that we had been in. Because of this, I think this is a market that will continue to be very noisy but that being said, it is probably only a matter of time before we see some questions asked. If you break above the top the shooting star from the trading session on Thursday, then I think we go looking towards the $1800 level, and then eventually the $2000 level.
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Keep in mind that the Ethereum market also needs to see bitcoin as a leader, so therefore if Bitcoin continues to rally, then I think Ethereum continues to be the case. If we break down below the bottom of the shooting star from the trading session on Thursday, then it's likely that we go back down to the 200-Day EMA, which is closer to the $1500 level. The 50-Day EMA sits just below there and is getting ready to cross above it. With that being the case, we have the so-called“golden cross”, that a lot of people think is a reason to buy and hold.
Whether or not that is going to be the truth is a completely different question, but at this point I think you get a situation where you are looking at this through the prism of whether or not there is a lot of risk appetite out there, because obviously crypto is a major risk asset that a lot of people go chasing once it's“all good” out there as far as taking extra risk. On the other hand, we get a bunch of“risk off” type of news, then the market is likely to break down below the 50-day ema , opening up the possibility of a move all the way down to the $1300 level.
Either way, it's going to be very volatile, so there's nothing wrong with putting on small positions and then billing up from there. The attitude of the market will continue to be erratic, but that will be nothing new considering what we have been seeing for some time. With this being the case, I think you got a situation where we will continue to see plenty of trading opportunities but right now it looks like a“buy on the dip” situation.
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