Ethereum has shown signs of life again during the trading session on Thursday, as we initially fell, but found buyers jumping back into the market near the $1600 level. The market has been grinding higher since the recent Shanghai upgrade, which does make a certain amount of sense. However, it’s not all sunny skies above necessarily. After all, the $1700 level has been important multiple times, so we can break above their decidedly on a daily close, that might be the impetus to get the bulls aggressive again.
Underneath, the 50-Day EMA sits near the $1455 level underneath. That of course is a large, round, psychologically significant figure, and an area we had gapped over the weekend. With that being the case, is very likely that there would be a significant amount of buying pressure in that area to support the market. Furthermore, you need to give an eye on the US dollar and of course the Federal Reserve, because quite frankly it can have a major influence on what happens in cryptocurrency, as people are willing to pay for it. After all, it is pretty far out on the wrist spectrum, so therefore you need to have people willing to take risk.
It’s probably worth noting that we are forming a bit of a hammer though, which is typically a bullish sign for ETH. Breaking down below the $1600 level probably has his market “resetting” closer to the $1500 level, but ultimately it is a market that still has plenty of buyers underneath. It is not until the market breaks down below the 50-Day EMA the traders start to get concerned. On the upside, if the market can close above the $1700 level, it’s very likely that Ethereum will eventually make a run toward the $2000 level, but obviously that would be more or less a longer-term move, it would take a significant amount of momentum to make that happen. As things stand right now, it does seem like a bit of a stretch in the short term, but it also looks very much like a market that’s trying to at least build up the momentum in the meantime.
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