- The Ethereum fell during the early hours of the Thursday session to test support yet again.
- The $4300 level has offered a bit of support over the last 6 or 7 trading sessions and is at a minor support level.
- If we were to break down below there, then it’s likely that market participants will look to drive Ethereum down to the $4000 level.
A Confluence of Factors
Top Regulated Brokers
There are a lot of different things going on at the same time, and it is worth noting that the $4300 level has offered a little bit of support. If we were to break down below there, then the 50 Day EMA, currently sitting just above the $4000 level, comes into the picture to offer even more support. You should also keep in mind that Bitcoin is a little bit noisy at the moment, and that will have a major influence on what happens in Ethereum over the longer term. After all, as Bitcoin moves, typically the rest of digital assets will follow, all things being equal.
We have the jobs report coming out on Friday, which of course will have a major influence on risk appetite, and this of course will be influential on how digital assets on the whole will behave. Remember, the Ethereum market is pretty far out of the risk spectrum. With this, if traders aren’t comfortable in taking risks, Ethereum will continue to struggle a bit.
However, when you look at the overall trend, Ethereum is still fairly bullish, but maybe a bit tired at this point. The market continues to see the $5,000 level above as a barrier, and perhaps even a target if we continue to see upward pressure. On a pullback, if we were to drop below the $3750 level, it is at that point that I would be a bit concerned about the overall bullish trend in this market. Expect volatility on Friday, perhaps followed by a bit of clarity.
Ready to trade ETH/USD? Here’s a list of some of the best crypto brokers to check out.