- During my daily analysis of crypto, Ethereum has captured my attention as it has lost over 6%, mainly due to the idea of yields raising higher in the United States.
- The exact cause of this of course cannot be known with 100% certainty, but it is worth noting that the ISM Services PMI numbers came out hotter than anticipated, as did the JOLTS Jobs Openings number in America.
- In other words, the American economy is still on fire, and that means cheap and easy money coming from the Federal Reserve is almost laughable is an imaginative idea.
Technical Analysis
The good news of course is that the Ethereum market still has quite a bit of support just below, not the least of which would be the 50 Day EMA, which currently sits right around the $3400 level. In fact, we are already starting to see a little bit of a recovery from that indicator. If we bounce from here, then it’ll be interesting to see whether or not the $3750 level get broken to the upside, because if it does, it opens up the possibility of a move to the $4000 level.
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However, if we break down below the $3300 level, then I think we will go looking to the 200 Day EMA, which sits right around the $3150 level. Underneath there, we also have the $3000 level, which is a large, round, psychologically significant figure. In general, this is a situation where traders continue to find buying opportunities on dips, and despite the fact that we have seen this type of action during the day, I think this just means it is only a matter of time before we see value hunters coming back into this market.
The size of the candlestick is obviously impressive, but this is how crypto behaves at times, especially when you get explosive moves in the bond market, because almost all crypto adoption relies on cheap and easy money. That being said, the market is likely to continue to see a lot of volatility but sooner or later will bounce.
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