ETH/USD Forecast Today 04/02: Bounces Back (Chart)

(MENAFN- Daily Forex)

• Ethereum had a rough session on Monday, as we initially opened up with massive selling, mainly in reaction to tariffs coming out of the United States for Canadian, Mexican, and Chinese goods.
• This had everybody in the world getting rid of anything remotely related to“risk on trading.”
• Because of this, I think the situation now could be presenting a bit of an opportunity, but I also realize that Ethereum plays“2^nd fiddle” to Bitcoin.

Technical Analysis

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I do think there is a significant amount of support near the $2200 level, which is where we have seen the market bounce multiple times in the past. All things being equal, this is a market that I think given enough time will probably turn around and bounce to the upside, but it is going to need to see Bitcoin rally in order to drag it right along with BTC. If we were to break down below the $2200 level, things could get rather ugly, but at that point in time we may enter“alt coin winter”, which would be a wonderful buying opportunity given enough time. If we do break down below the $2000 level, then I will simply let Ethereum crash before buying it again.

The more likely scenario is that we turn around and try to break above the $3000 level, which could open up the possibility of breaking toward the $3400 level. As things stand right now, I still think it's a“buy on the dip” type of scenario but I would not get overly aggressive or heavily levered to this position, because I would expect more volatility going forward, not less. Those of you who didn't trade during the last Donald Trump administration, welcome - it's always a wild ride and you are going to have to be very cautious with something like crypto.

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