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Ethereum Price Forecast – Ethereum Dips But Finds Buyers

By:
Christopher Lewis
Published: Jan 5, 2024, 14:32 GMT+00:00

The Ethereum market fell initially during the trading session on Friday, but turned around to show signs of life as buyers continue to buy each dip.

Ethereum coins, FX Empire

In this article:

Ethereum Forecast Video for 08-01-2024

Ethereum Technical Analysis

Ethereum markets initially dipped on Friday as we continue to see a lot of volatility in the crypto markets overall. That being said it looks like the 20-Day EMA has offered enough support to turn things around and it looks also like the $2100 level is an area that you will have to pay close attention to. Speaking of the $2100 level, it also features a 50-Day EMA, and previous resistance so I think there’s a lot of market memory that you have to pay close attention to in that general vicinity.

The shape of the candlestick is a bit of a hammer and at this point in time it looks like every time we drop, there are plenty of buyers underneath and are willing to step in and take advantage of that value. Just above, we have the $2400 level offering resistance, right along with the $2500 level, which of course is a large, round, psychologically significant figure that would attract a certain amount of attention.

Pay attention to Bitcoin, because it does tend to drive what happens with the rest of the crypto markets, Ethereum included. It looks as if traders are still banking on the idea of a Bitcoin ETF, and therefore a lot of people believe that bitcoin will drag the rest of crypto right up with it. The Ethereum market of course has the added bonus of the fact that Ethereum is used as a backbone for so many other smaller projects, so as long as the crypto space is doing fairly well, Ethereum will be one of the biggest beneficiaries due to the fact that it has such high utility in that world.

Ultimately, this is a market that I think continues to be very noisy but there are plenty of buyers underneath that are willing to take advantage of “cheap coins”, so that is something that you need to keep an eye on. I have no interest in shorting Ethereum anytime soon, but I suppose if we broke down below the $1900 level, I would have to at least entertain the idea.

For a look at all of today’s economic events, check out our economic calendar.

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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