(MENAFN- Daily Forex)

• Ethereum has found itself in a bit of trouble during the Wednesday session, breaking down below the hammer from the previous session, therefore kicking off the so-called“hanging man” candlestick pattern.
• I don't necessarily think that it means that Ethereum is suddenly going to collapse, but a little bit of a pullback could be in the works here.
• It would make a certain amount of sense, considering that Bitcoin has struggled to break above the $120,000 level, so if Bitcoin starts to drop, it's likely that Ethereum will follow right along.

Technical Analysis

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money

The technical analysis for Ethereum is very strong, as we have rallied rather quickly. Breaking above the $3000 level is a good sign, and we ran all the way to the $3800 level. The market, rallying above the $3800 level, could send the Ethereum market to the 4000 level, which obviously has a lot of psychology attached to it as it is a large, round, psychologically significant figure.

Even if we do fall from here, I think there's plenty of support all the way down to the $3000 level, assuming that we even get there. Furthermore, you need to pay close attention to Bitcoin, because if Bitcoin rises or falls, does have a certain amount of a“knock on effect” in the Ethereum market. All things being equal, as goes Bitcoin, so goes Ethereum in general. The market is a little overextended at this point, so I do think that a pullback is probably going to end up being very healthy for this market.

Ultimately, I do think that you need to pay close attention to volatility overall, because the markets have been extraordinarily choppy and almost all assets that I follow. Ethereum could in fact be a little bit of a laggard, but at the end of the day it will move in the same direction as Bitcoin, as it is quite often used as a“2nd choice” for Bitcoin traders. If we were to break down below the $3000 level, then I think things really start to fall apart. I don't expect that, but it is something to keep in the back of your mind.

Ready to trade ETH/USD? Here's a list of some of the best crypto brokers to check out.

MENAFN24072025000131011023ID1109840906