During Tuesday's trading session, Ethereum remained relatively quiet, hovering around the $1650 level. The $1700 level could present some resistance, as it's a psychologically significant level and an area that has seen a lot of activity in the past. The market has been stagnant after a significant move, suggesting that traders may be building up enough confidence to break out.
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However, cryptocurrencies are challenging to trade at the moment, as risk appetite is unpredictable. Cryptocurrencies like Ethereum, Bitcoin, and Cardano require a lot of risk appetite to thrive, which typically goes hand in hand with loose monetary conditions. The Federal Reserve is currently fighting against such conditions, and its tightening monetary policy has wrecked the crypto market in recent months. Nonetheless, we have seen a rally in crypto during a period of tightening in the bond market, as yields continue to rise in the United States. This could indicate that people are starting to view crypto through a different lens, considering what it might end up being.
Ethereum is closely linked to Bitcoin, which is the largest market, and typically follows its lead. From a technical standpoint, the 50-Day EMA is currently below the current trading level, and has recently crossed above the 200-Day EMA, initiating the so-called "golden cross." This indicates that the market could potentially reach the $2000 level, but there's still a lot of work to be done in this area, and patience is key. The crypto recovery has been slow, but this is not unusual.
During significant pullbacks, there may be buyers of Ethereum and other cryptocurrencies. It's expected that most of these charts will move in synchronicity over the long term. Ethereum recently underwent an upgrade, which could help boost its value. While it's unclear whether the next major bull run is imminent, it seems that the worst of the selling pressure has dissipated. Traders should remain cautious, keep an eye on market trends, and implement appropriate risk management strategies to minimize their exposure to potential losses.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
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