Ethereum
has been struggling recently as the monetary conditions started to tighten more
with the US Dollar gaining across the board and global bond yields rallying.
Strong data are making the market to lean on the more hawkish side as the Fed
kept all the options on the table at the last week’s FOMC meeting. We are also
at peak euphoria and a turnaround in fundamentals can make Ethereum to selloff
hard.
Ethereum Technical Analysis
– Daily Timeframe
On the daily chart, we can see that Ethereum
started a slow fall from the 2029 resistance and it’s
now near strong support levels. The first one is the 50% Fibonacci retracement level
around the previous swing low support. The second one is the trendline where
there’s the 61.8% Fibonacci retracement level.
Ethereum Technical Analysis
– 4 hour Timeframe
On the 4 hour chart, we can see that we have a
downward trendline where
the sellers have been leaning onto to position for more downside. The buyers
though are fighting back hard and stepping in at the 1816 support. They will
need a break above the trendline to have more conviction and pile in
aggressively to target the 2029 resistance. The sellers, on the other hand,
will want to see the price breaking below the support to target the next one at
the 61.8% Fibonacci retracement level.
Ethereum Technical Analysis
– 1 hour Timeframe
On the 1 hour chart, we can see that we
have a minor resistance at 1844. If the buyers manage to break above it, we will
have a new higher high and switch the market structure from bearish to bullish
increasing the chances of a rally into the downward trendline. Anyway, the levels
to watch are the downward trendline and the 1816 support.
Upcoming Events
Today
the market will be focused on the US Jobless Claims and ISM Services PMI data,
while tomorrow all eyes will be on the US NFP report. Strong data should lead
to a more hawkish market pricing and it’s likely to weigh on Ethereum, while
weak readings should cause recessionary fears across the market ultimately
weighing on the risk sentiment and the cryptocurrency.
This article was written by FL Contributors at www.forexlive.com. Source