Ethereum Forecast: Continues to Form an H Pattern
Ethereum will continue to struggle on multiple fronts.
Ethereum has fallen yet again during the trading session on Thursday as it looks like we are going to threaten the $1000 level. The pattern that we are carving out on the chart is an “H pattern”, which is typically very bearish. The $900 level recently offered significant support, and if we were to pierce that level, it’s very likely that Ethereum will go much lower. This is what I’m hoping for because I would love to be able to accumulate Ethereum at low levels again.
Ethereum will continue to struggle on multiple fronts. The first problem of course is the fact that the Federal Reserve is tightening its monetary policy, so therefore risky assets such as cryptocurrency get decimated. In this scenario, Ethereum is no better than any other one, and it’s not until we see Bitcoin get a little bit of a boost that Ethereum can have a real shot. By extension, it needs to see the US dollar fall, because Bitcoin is getting killed by that very same greenback.
Furthermore, the Ethereum 2.0 rollout has been slow to say the least, and as long as that continues to drag on, there is a certain amount of ambivalence when it comes to this ecosystem. We have seen multiple lenders get crushed, and hacked on Layer-2 types of environments, which of course sit on top of Ethereum. At this point, crypto is entering a “crypto winter”, which is a time where people will accumulate crypto hoping for a major shot higher. I do think that there is some type of future for crypto, but I don’t think it’s going to be quite what most people anticipate. After all, we will have digital currencies coming out of central banks soon enough, and while the purest and libertarians argue about safety, Aunt Millie will be using those central bank assets.
If we were to turn around here, I think that the 50 Day EMA comes into the picture as major resistance, which sits just above the $1600 level. After that, you have a resistant barrier in the neighborhood of $1800 that could cause problems as well. Ultimately, I think this is a “fade the rallies” type of situation if you are planning on trading from both sides. Crypto is about as toxic as it gets right now, so that’s probably the prism you need to be looking at this market through.