- Ethereum has done very little on Wednesday, which considering what happened on Tuesday is a bit of a minor victory.
- Because of this, I think the market is more likely than not going to continue to be shaky, to say the least.
- After all, we do have “The Merge” coming, but that is already priced into the market. That’s true, unless, of course, something goes wrong. If it does, Ethereum is going to get absolutely slammed.
The biggest concern that Ethereum has now has nothing to do with crypto and has everything to do with the US dollar. Because of this, I think you need to be cautious about position sizing, and I certainly think that this is a market that has nowhere to be anytime soon. If there is a considerable amount of risk aversion out there, I just don’t see how Ethereum, or any other crypto for that matter, has any real staying power with a rally.
Wait for an Opportunity to Buy the Dip
This is not to say that we are going to collapse, just that I don’t think there’s much driving the market right now. Volumes have been a bit anemic on most exchanges that I follow, and therefore it does not look like we have anywhere to be anytime soon. Market participants will continue to be flustered with the lack of momentum, and some people will be looking at this as a potential accumulation phase. I think we are still a bit too elevated for that to be the case, and of course, the macroeconomic environment does not favor these types of markets right now.
The lack of hustle on this chart is probably something that you will have to get used to for the foreseeable future, as we continue to use the $1500 level as a short-term support level. Breaking down below their opens a move down to the $1200 level which is supported all the way down to the $900 level. I think you have plenty of time to start buying Ethereum, and I also believe that you will get the opportunity to buy it at much lower levels given enough time. The crypto markets are essentially where the money goes the diet at the moment, and I just don’t see what the catalyst is to turn around, at least not until the Federal Reserve starts to give out cheap money again.
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