Ethereum has been consolidating
around key technical levels as the negative macro backdrop continues to weigh
on the crypto market.
Meanwhile, the geopolitical
situation remains unchanged amid stalled US-Iran negotiations and the ongoing
Saudi-Houthi conflict.
Oil prices are
back above the $100 level, the Federal Reserve can only get more hawkish amid higher
inflation and growth concerns are starting to take centre stage. That’s a bad
mix for risk assets like Ethereum.
This week, the
most important event will likely be the release of the US Flash PMIs on Friday,
barring a surprising breakthrough in US-Iran negotiations.
If the data
disappoints, growth concerns will likely increase, and we could see another
selloff in Ethereum. Better than expected data, on the other hand, might lead
to a relief rally in the short-term but it wouldn’t change the bigger picture
as it would just reinforce the need for rate hikes.
ETHEREUM TECHNICAL
ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can
see that Ethereum is consolidating around the
major 2,360 support and the trendline. The buyers will likely continue to step
in around these levels, with a defined risk below the trendline, to keep
targeting the 3,400 level. The sellers, on the other hand, will want to see the
price breaking lower to open the door for new lows and target the 1,900 level
next.
ETHEREUM TECHNICAL
ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we
have a downward trendline defining the bearish structure. We can expect the
sellers to continue to lean on the trendline, with a defined risk above it, to
keep targeting a break below the major upward trendline. The buyers, on the
other hand, will want to see the price breaking higher to increase the bullish
bets into new highs, with the 2,570 level as the first target.
ETHEREUM TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, there’s
not much we can add here as the buyers will continue to step in around the
support and the upward trendline or wait for a break above the downward one to
position for new highs, while the sellers will need a break below the upward
trendline to open the door for ne lows. The red lines define the average daily range for today.
UPCOMING CATALYSTS
On
Thursday we get the latest US Jobless Claims figures, while on Friday we
conclude the week with the Flash US PMIs.
This article was written by Giuseppe Dellamotta at investinglive.com.
