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Ethereum Price Forecast – Ethereum Continues to Threaten a Breakout

By:
Christopher Lewis
Published: Dec 1, 2023, 14:59 UTC

Ethereum rallied just a bit during the early hours on Friday, as we continue to threaten the $2125 level.

Ethereum coins, FX Empire

In this article:

Ethereum Forecast Video for 04.12.23

Ethereum Technical Analysis

The Ethereum market rallied significantly during the course of the trading session on Friday, as it looks like we are threatening the $2125 level. The $2125 level is an area that has been difficult to break above, but if we do it’s likely that Ethereum will truly take off to the upside. In that scenario, I see Ethereum offering a significant opportunity on dips, as the $1925 level is sitting underneath offering a significant amount of support. Furthermore, the 50-Day EMA is racing toward that area.

In general, this is a market that I think continues to be noisy, and of course it is typically influenced by Bitcoin as Bitcoin drives the rest of crypto in general. Interest rates in the United States also have a major influence on the markets as well, and therefore it’s likely that we will see a massive negative correlation between the 10 year yield, and Ethereum. In other words, there are a lot of things going on that could cause quite a bit of noise. That being said, I think we are currently in a situation where we are trying to sort out whether or not we can break out of this range, but at this point I think it remains “buy on the dips”, and at the same time Bitcoin looks like it’s trying to do everything you can to break out.

The US dollar will have a certain amount of influence on this market, as the price of Ethereum is quantified in that very currency. If the US dollar starts to lose strength again, that will also help the Ethereum market. That being said, the US dollar is picking up a little bit of strength on Friday, so it suggests that the Ethereum market may not be ready to break out. In other words, I think this is a situation where we need to find value, and of course weight on external factors to push the market in our favor. Once we do break above the $2125 level, it’s likely that Ethereum will try to reach the $2300 level above there. In general, this is a market that I think continues to be noisy.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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