- The Ethereum market initially rallied a bit during the trading session on Friday but gave back gains near the $4,500 level.
- The $4,500 level is an area that's been pretty significant resistance over the last, say, seven or eight days. But I don't think that's the real problem at the moment.
- The real problem came in the form of the employment figures coming out of the United States at an addition of 22,000 jobs in August, much less than the anticipated 75,000 jobs. Canada actually had 65,500 jobs lost last month instead of the expected 4,500 jobs gained.
In other words, there's a real concern about risk appetite and the global economy at the moment. If this continues to be the case, a lot of crypto will struggle to gain momentum to the upside.
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Ethereum is Far Out There on the Risk Spectrum
And when you are talking about a market, an asset that is pretty far out on the risk spectrum like Ethereum is, it'll do nasty things to it. Whether or not we break down from here remains to be seen, but it certainly doesn't look like it's ready to take off. The $4,000 level below should be significant support, right along with the 50 day EMA. It looks like we are going to end up forming an inverted hammer.
So, we'll see how that plays out. A break above the $4,500 level could open up a move to the $5,000 level. But at this point in time, I think there's a lot of questioning going on and therefore we may have to wait to see whether or not traders feel like taking a risk in the crypto markets. After all, Bitcoin itself hasn't done extraordinarily well either. If this continues in Bitcoin, Ethereum will continue to suffer as a result.
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