Ethereum has rallied a bit during the trading session on Thursday to reach the $1250 level. The area is a major resistance barrier that we have seen over the last several weeks and have been trading back and forth from. The $1250 level above offers a bit of a “ceiling”, and at this point, it’s likely that the $1000 level underneath will continue to offer support. If we were to break down below the $1000 level, the market then could go down to the $900 level.
If we were to break down below the $900 level, it’s very likely that Ethereum will break down drastically, and then perhaps even to the $500 region. This is an area where I would anticipate seeing a lot of buyers, but perhaps it may take a while for accumulation to turn things around. That being said, the market is likely to see “crypto winter” continue, meaning that we have a scenario where the attitude of the market is simply sideways, and larger players are starting to build up massive amounts of Ethereum for a bigger play. After all, the market has done this multiple times in the past, so certainly there are people out there willing to jump in and take advantage of cheap Ethereum so that they can build up a huge position.
If the market were to break down, then I think that area right around $500 could be a longer-term area as well. Ultimately, I think this is a market that will eventually turn around, but you need a turnaround in central banks in order to show signs of slowing down when it comes to monetary policy tightening. That is more likely than not going to be quite a while down the road, so I don’t have any interest in trying to get too cute at this point, but I do recognize that we have a scenario where we will eventually turn things around.
As for myself, I’m starting to accumulate small bits and pieces of Ethereum for the next run higher, but with the slow rollout of Ethereum 2.0, monetary policy, and a lot of “risk-off” attitude, it’s not a huge surprise to see that we are struggling to go higher. Because of this, if you have a longer-term belief in crypto, you know what you should be doing right now.
