The Ethereum market has rallied a bit during the trading session on Wednesday, as we continue to dance around the $1800 level. Crypto seems to be in a bit of a consolidation phase right now, and of course there are a lot of concerns out there when it comes to the idea of the risk appetite around the world rising and falling. Remember, Ethereum, and the rest of cryptocurrency continues to see a lot of high correlation to the risk appetite of traders.
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We recently have seen traders begin to bet that the Federal Reserve was going to cut interest rates, and in that environment crypto has performed quite well historically. However, there are a lot of questions about whether or not that actually happens, and the Federal Reserve has pushed back against this idea, so it suggests that we are going to continue to see a lot of volatility.
The 50-Day EMA currently sits just below the $1650 level, and is rising, perhaps offering a little bit of a dynamic support. The 200-Day EMA is near the $1575 level and rising as well. On the other hand, if the market were to break above the $1875 level, then it’s likely that Ethereum could go looking to the $2000 level, which obviously would cause a lot of headline noise.
In the short term, it’s very likely that we continue to bounce around between the $1700 level below, and the $1850 level. The fact that the market did pull back a bit during the day suggests that we are not quite ready to see Ethereum take off, and therefore short-term back-and-forth range bound trading will more than likely be the way that we see the markets behave over the next several weeks. Ultimately, we will need to make a bigger decision, and it’s when we break out of that range that you begin to get hints as to where we’re going next. Short-term volatility with a tight range is what you are more likely than not going to see.
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