The roughly 17% fall in Ethereum will not be welcomed by bulls. The bad news, however, is that we might have a little further to go before we see significant buying kick in again. Price is currently correcting lower within the bull channel which has framed the move off the summer lows. If we look at the last correction within this channel, a move of equal proportions would take us down to a test of the bull channel low and the structural support around 3707.50. Bulls can monitor price action as test this zone, looking for reversal candles to set longs, anticipating a resumption of the broader bull trend, targeting a move back up to current highs around 4944.75.
What to Watch
Cryptos have come under pressure this week from the resurgence in USD. Higher US inflation and retail sales have once again stoked Fed tightening expectations, weighing on riskier assets in the near term. However, the Fed is insistent on maintain a slow, gradual pace of tightening. Any chinks in the data armour should be accompanied by USD unwinds from spec players, allowing cryptos to recover so keep an eye on incoming US data over the next week.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.