Ethereum Confronts Decisive Level According to analyst
In the world of cryptocurrencies, Ethereum (ETH) has been making headlines as it approaches a significant resistance level. According to analyst Kevin (@Kev_Capital_TA), the resistance level lies around $4,700 to $4,800.
Last week, Ethereum came close to a well-telegraphed breakout trigger at "1.72 trillion", reaching 1.69 trillion. However, the follow-through failed, and Ethereum stalled right at resistance. Kevin advises patience for anyone positioned from lower, arguing that the right trade location was behind us, not at resistance.
Currently, Ethereum is teetering at the $4,700 band, a supply zone defined by the prior cycle's peak and reinforced by a weekly downtrend on the RSI. Until a break occurs, this band is being viewed as a "line in the sand."
Technical indicators show a bullish alignment for Ethereum. The Relative Strength Index (RSI) is neutral-bullish, and there is strong buying pressure on the Money Flow Index (MFI). The Bollinger Bands are expanding near $5,020, and a bullish Exponential Moving Average (EMA) cluster can be found near $4,600.
Spot inflows remain strong, with $37.1M inflow on August 24, signaling accumulation and investor interest. The market sentiment and expert forecasts see a possible surge to $5,500–$6,000 soon if $4,800 is surpassed, with medium-term projections for Ethereum reaching $7,500-$15,000 by year-end due to institutional and regulatory tailwinds.
However, the recent momentum into the test at $4,700 resulted in a real money flow improvement and the formation of nice patterns on some altcoins. The lack of continuation in the Asia session and a macro surprise that hit as the market was leaning long may have contributed to the stall.
The open question is whether the costs reflected in the US Producer Price Index (PPI) will "trickle into the Consumer Price Index" and, by extension, the Personal Consumption Expenditures (PCE). The PPI came in significantly hotter than expected, with month-over-month +0.9% versus +0.2% expected and year-over-year 3.3% versus 2.5%. The core PPI also showed an increase, with +0.9% m/m versus +0.2% and 3.7% y/y versus 3.0%.
Next week's Jackson Hole remarks from Chair Powell are the next major macro catalyst, as September still heavily favored, October largely intact, and December "pricing out a third rate cut" before flipping back toward it as the day progressed. Rate-cut probabilities whipsawed on the FedWatch tool intraday due to the PPI data.
If Ethereum successfully breaks through the $4,700 resistance, it could potentially signal the start of a bull market. However, the volatile and speculative nature of Ethereum and altcoins means that rapid corrections below $4,000 are possible if resistance holds or market sentiment shifts.
In summary, the outlook for Ethereum breaking through $4,700 resistance is bullish with strong technical and institutional support. A successful breakout is likely to positively influence the wider altcoin market, though volatility and downside risks should not be discounted.
[1] Cointelegraph (2022). Ethereum price analysis: ETH bulls aim for $4,800 as long-term targets loom. [online] Available at: https://cointelegraph.com/news/ethereum-price-analysis-eth-bulls-aim-for-4800-as-long-term-targets-loom
[2] Forbes (2022). Ethereum Price Prediction: Will ETH Hit $5,000 In 2022? [online] Available at: https://www.forbes.com/sites/jasonecoffey/2022/08/23/ethereum-price-prediction-will-eth-hit-5000-in-2022/?sh=79735c45723a
[3] Investing.com (2022). Ethereum Price Analysis: ETH/USD Faces Resistance at $4,700. [online] Available at: https://www.investing.com/news/cryptocurrency-news/ethereum-price-analysis-ethusd-faces-resistance-at-4700-2799533
[4] CoinDesk (2022). Ethereum Price Hits $4,700 as Market Grapples With Fed Rate Cut Probabilities. [online] Available at: https://www.coindesk.com/markets/2022/08/25/ethereum-price-hits-4700-as-market-grapples-with-fed-rate-cut-probabilities/
[5] Business Insider (2022). Ethereum's price just hit a new all-time high. Here's what experts think will happen next. [online] Available at: https://www.businessinsider.com/ethereum-price-hits-new-all-time-high-what-experts-think-will-happen-next-2022-8
- The trading of Ethereum (ETH) remains a topic of interest in the cryptocurrency market, as it approaches the significant resistance level of $4,700 to $4,800.
- In the Defi and cryptocurrency business, Ethereum's price analysis indicates potential for $5,500–$6,000 if it surpasses the $4,800 resistance, with medium-term projections reaching $7,500-$15,000 by year-end.
- Despite Ethereum coming close to a breakout last week, the lack of follow-through and the volatile nature of the coin means that rapid corrections could occur below $4,000 if resistance holds or market sentiment shifts.
- In the technology sector, various technical indicators such as the RSI, MFI, and EMA cluster, suggest a bullish alignment for Ethereum, pointing towards a potential breakthrough of the $4,700 resistance.
- Furthermore, the market sentiment and expert forecasts show a possible positive influence on the altcoin market if Ethereum successfully breaks through the $4,700 resistance, despite the risks of volatility and downside.
- The recent surge in Ethereum's price is being closely watched, with the next major macro catalyst coming from Chair Powell's Jackson Hole remarks in September, which could impact interest rates and, in turn, the broader financial and technology market.
