- Ethereum price is using a little bit of room to book some gains.
- ETH price could rally back to $1,243.89 as it already did for the rest of this week.
- A daily close above could provide a sign of a recovery next week.
Ethereum (ETH) price could be showing some relief as investors and traders are readjusting and getting accustomed to the new backdrop of inflation woes in global markets. Although it is felt that there is less disposable cash to spend on cryptocurrencies, that does not mean that bulls cannot shift the needle to the upside, but expect those moves to not be that substantial in the longer term. ETH price is thus looking for equilibrium, searching for direction in a possible, sideways patch for a breakout either way.
ETH price in a sideway patch looking for conviction
Ethereum price is in an atypical pattern, with bulls using a lot of juice to push price-action back up to near $1,243.89. The question is whether bulls have not already burned too much cash in trying to reach that level instead of letting price action dip and scoop up below $1,000. The situation is now becoming unsustainable for both parties, and a breakout is due.
ETH price could rally steadily back towards the aforementioned $1,243.89 hurdle again. With the dollar trading sideways and backing off a bit, a small pop above could even materialise. Going into the weekend and with fewer restraints, a test of $1,400 could be in the making but bear in mind that the background has not changed fundamentally, and any profit needs to be treated with caution.
ETH/USD daily chart
There is a risk, of course, that headwinds could flare up and the ferocious dollar’s strength could return, squeezing out bulls from their positions. This push could be proven one too many and lead to a break of $1,000, which could then trigger, in turn, an exodus of investors to get out of the way of the bearish steamroller that will squash price action towards $830.93. Which means a 25% decline added to the descent.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.