ETH/USD Forecast: Gives Up Early Gains – 31 August 2022
I do believe that it is probably only a matter of time before we would see more selling, since we have a serious negative move since the risk appetite is drying up.
Underneath, the $1000 level is a major support level, which is sitting just underneath the $1200 level support level as well. This is a market in that I think we will see a lot of supportive action. I think this is a market that has further to go to the downside, so as a result I have no interest in trying to get long. I do believe that it is probably only a matter of time before we would see more selling since we have a serious negative move since the risk appetite is drying up.
I understand that there is a big upgrade in the Ethereum market that everybody is talking about, but quite frankly there are much bigger things out there to worry about. As the central banks around the world continue to tighten monetary policy, it takes a lot of the risk equation out, meaning that people will not be looking to risk a bunch of money in something as shaky as cryptocurrency.
If we break down below the lows of the Monday session, that opens all that selling pressure, and we go much lower. However, if we turn around a break above the 50 Day EMA on a daily close, then it’s very likely that we could go looking to the $2000 level, which is not only a large, round, psychologically important figure, but it is also where we see the 200 Day EMA coming into the picture. In other words, there’s a lot of confluence there that people will be looking at. If we break above there, then it’s likely that we see a massive amount of bullish pressure. Obviously, that takes a lot of work, and most certainly a change in attitude. To think that the upgrade is going to cause the market to continue to rally ignores the fact that everybody already knows it’s coming.
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