Ethereum Price Forecast – Ethereum Rallies Again

Ethereum Forecast Video for 22-12-2023

Ethereum Technical Analysis

Ethereum rallied a bit during the trading session on Thursday, as it looks like we are ready to continue to find more buyers on dips going forward. Quite frankly, Ethereum is getting a bit of abuse due to lower interest rates and I think that will continue to be the case going forward. Ultimately, money is trying to flow somewhere to pick up some type of momentum, and crypto is pretty far out on the wrist spectrum, so it does make a certain amount of sense that people are looking to it. That being said though, there are some things to keep in the back of your mind over the next couple of days.

The holiday season will sap liquidity out of the market as far as institutions are concerned, and at this point in time you are probably only looking at retail trading. That’s not to say that retail traders cannot move the Ethereum market, just that some of the liquidity will certainly be gone. With this, we could get some erratic movement, but if you are a longer-term trader, you can jump into the market and simply ride out the volatility. All things being equal, the market is one that will continue to have buyers on dips, with the $2100 level offering a significant amount of support.

To the upside, the $2500 level above is a short-term ceiling above, and at this point in time if we were to take that out, Ethereum could rally toward the $2700 level. That being said, the next couple of weeks might be a little bit difficult, so with that being the case, I think you have to be very cautious with the position sizing, but all things being equal, I think this is a market that you can add to your position sizing along the way, recognizing that the 50-Day EMA sits just above the $2000 level, and that probably adds even more support underneath as well. As long as the interest rate situation in the United States continues to drop, it’s likely that the market will eventually find buyers coming into this market in order to take advantage of momentum and the potential easy money situation that seems to be coming.