Ethereum,
like his big brother Bitcoin, eventually fold as the big picture outlook is
starting to look more and more bleak with global growth endangered by the
Chinese ailing economy and lack of big stimulus from the authorities, and the
“higher for longer” stance from the Fed or even more rate hikes. The resilience
in the cryptocurrency has been remarkable in the past months, but we might be
at a tipping point now.
Ethereum Technical Analysis
– Daily Timeframe
On the daily chart, we can see that Ethereum after
breaking below the strong support at 1816
where we had also a key trendline, sold
off very strongly and even fell below the key 1681 support. This has opened the
door for much lower prices ahead with the next target coming around the 1370
level. We will likely see the sellers piling in at every rally from now on.
Ethereum Technical Analysis
– 4 hour Timeframe
On the 4 hour chart, we can see that we now have a
strong area around the broken support turned resistance at 1681.
In fact, we can see that the price tried to rally past the level but got
rejected multiple times. If the price comes back there, we can expect the
sellers piling in again with a defined risk above the level and target new
lows. The buyers, on the other hand, will need the price to break above the
resistance to open the door for more upside and target the 1816 level.
Ethereum Technical Analysis
– 1 hour Timeframe
On the 1 hour chart, we can see that we
have some minor key levels that might attract the sellers. The first one is the
recent swing low at 1648 where we may see the sellers piling in with a tight
risk above the level. Otherwise, more conservative sellers, may want to wait
for the price to take out the recent low at 1580 before joining the downtrend.
Upcoming Events
This week is
pretty empty on the economic data side as we will only have the PMIs today and
the US Jobless Claims tomorrow. Strong data should support Ethereum in the
short term, but the prospects of more rate hikes might weigh on the
cryptocurrency soon after. Conversely, weak data is likely to cause some
recessionary fears in the markets leading to negative risk sentiment and
eventually weighing on Ethereum. Remember also that this is the Jackson Hole
Symposium week, so we will hear from many central bankers including Fed Chair
Powell, who is set to speak on Friday.
This article was written by FL Contributors at www.forexlive.com. Source