Like
Bitcoin, Ethereum continues to surprise in light of many headwinds that range
from economic issues in China and risks of higher rates if inflation remains
stubbornly high given the resilience in the labour markets and consumer
spending.
Ethereum Technical Analysis
– Daily Timeframe
On the daily chart, we can see that Ethereum seems
to be bottoming out near the trendline where we
can find the confluence with the
50% Fibonacci retracement level
and the 1816 support. This is
where the buyers are stepping in with a defined risk below the trendline to
target a breakout of the 2029 resistance. If the price falls below the
trendline, we should see the sellers piling in more aggressively to target the
1681 support.
Ethereum Technical Analysis
– 4 hour Timeframe
On the 4 hour chart, we can see that the price
action has been rangebound around the support area as the market is awaiting a
catalyst to push more strongly on either side. This gives us a clear setup as a
break above the 1880 resistance should lead to a rally into the 2029 high,
while a break below the trendline should trigger a selloff into the 1681
support.
Ethereum Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we
have a minor downward trendline defining the current bearish trend. This is
another level for the buyers to watch out for as a break above it might take
the price into the 1880 level.
Upcoming Events
This week is a
bit empty on the data front and the most important release will be the US
Jobless Claims tomorrow. Readings in line with expectations should be the most
favourable scenario. In fact, in case we see a big beat, we may see more
hawkish expectations around interest rates that can weigh on Ethereum. On the
other hand, a big miss is likely to cause recessionary fears and lead to
risk-off sentiment which might cause a selloff in the cryptocurrency.
This article was written by FL Contributors at www.forexlive.com. Source