Ethereum fell on Friday to reach the $1750 level. This is an area where we had seen support previously, and now it looks like we may very well break down through it. If we do, that opens up the floodgates and Ethereum could see a move to the $1500 level rather quickly. The fact that we did this on a Friday does not bode well, because it shows just how little interest in Ethereum there is by institutional investors.
I would not be surprised to see this market hit $1500, where one would assume there is a certain amount of psychological support. If we were to break down below the $1500 level, it’s likely that we will go much lower. Rallies at this point would be opportunities to sell, and as you can see I have a descending triangle on the chart that shows signs of being broken down below, and the “measured move” suggests that we could go as low as $1450.
If we do rally from here, the $2000 level should offer significant resistance as it is an area where we’ve seen sellers previously, and is psychologically important. When you look at this chart, there’s nothing positive about it, and it’s not until we break above the $2250 level that I would consider a potential turnaround being shown. Ultimately, this is a market that has been noisy for a while, and as long as the US dollar remains strong, it’s very unlikely that Ethereum will find much of a bed.
At this point, the market is going to continue to see a lot of “risk-off”, so it makes quite a bit of sense that we will continue to see crypto get crushed. Ultimately, as long as there is no risk appetite out there, crypto is going to be one of the last places people would put money to work. Any rally at this point in time that shows signs of exhaustion would be a shorting opportunity. Ethereum also is suffering at the hands of its own inactivity, all of the upgrades seem to be taking longer than anticipated. Furthermore, I just read the other day that 1.3 million transactions on the Ethereum network failed last month alone. At this point, Ethereum looks like it’s got further to go to the downside.
