Ethereum Price Forecast – Ethereum Continues to Fight

Ethereum Forecast Video for 02-01-2024

Ethereum Technical Analysis

Ethereum has chopped around a bit during the trading session, and it looks as if we are finding buyers on a little bit of a dip, and that’s a good sign, as market participants will continue to look at this through the prism of perhaps trying to pick up value. In this scenario, I think a lot of it’s being driven by the idea of cheap money coming out of the United States with the Fed cutting rates in 2024. That’s put a little bit of a turbo charge into the cryptocurrency markets. Underneath, I see the $2,100 level as a major support level with not only previous resistance being found there, but we also have the 50-day EMA, which will attract a certain amount of attention.

Speaking of exponential moving averages, we also have the 20 day EMA that has offered significant support as well. So really, at this point, I think you have a situation where there’s so much support underneath that it is probably only a matter of time before Ethereum truly takes off. The market will probably struggle a little bit with $2,500, but once we get above there, it does open up a move to the $2,750 level, and then eventually $3,000 after that. Ethereum needs a lot of risk appetite, and right now it certainly looks like there is plenty, but right now we also have to keep in mind that we have recently shot straight up in the air, so working off some of this froth over the last couple of weeks makes perfect sense.

Ultimately, liquidity also has to be thought of in this timeframe as most traders will be away from their desks, especially institutional ones. While Ethereum doesn’t attract as much institutional trading as Bitcoin does, it clearly will have an influence on how markets behave overall.