- The Ethereum market has rallied a bit during the trading session on Thursday as we continue to see a little bit of bullish pressure.
- It looks like we are going to continue to swim upstream.
- The Ethereum market did give back quite a bit of the gain by the end of the session though, so it looks like we might be setting up for a shooting star to form.
That shooting star would be at the “perfect level, with the $2000 level being a massive resistance barrier. If we were to break above the $2000 level, then it’s possible that the market could go much higher. If we break above the $2000 level, then there’s a lot of psychology that goes into that move, suggesting that Ethereum is going to continue to break much higher. At that point, it’s likely that the market will enter a new bullish trend.
On the other hand, if we were to turn around and break down below the $1800 level, then the market could go down to the $1700 level initially, perhaps down to the $1400 level after that. After all, we have seen a nice run to the upside, mainly due to the idea of upgrades coming to the Ethereum network and moving right along. The idea is that Ethereum will be much more efficient and quite a bit cheaper as far as gas fees are concerned, and therefore makes it a bit more viable.
That being said, Ethereum is still pretty far out on the risk appetite spectrum, so we need to have more of a bullish market when it comes to risk in general. While we are not going to be overly bullish for the long term unless we get some type of help, which the market is currently trying to glean from the Federal Reserve. If interest rates continue to drop, then it’s possible that we could see a crypto rally. That being said, Ethereum clearly is the leader as far as a layer one solution is concerned, second only to Bitcoin. If Bitcoin starts to rally, then it’s likely that we will see Ethereum rally right along with it. However, if Bitcoin starts to sell off, that could be very negative for this market as well. Keep in mind that there is a high correlation between the two markets.
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