Welcome back,
Ethereum has been outperforming the entire crypto market for the last few days. Even Bitcoin has shown weakness compared to Ethereum, and that is why I have been saying this thing again and again that Ethereum is going to have one of the most hated runs when it actually starts to take its run.
In this blog, I am going to talk about how we are at the verge of breaking the final resistance for Ethereum in its entire life cycle and once we break this resistance, we are going to step foot into the trajectory where Ethereum will explore for the new all-time high. So let's start discussing this and get a clear picture of the possibilities which can be given to us by the market.
In the screenshot below, we can see Ethereum making an all time high in November 2021, where the all time high was close to 4800 to 4900 USD and right now, we are actually testing the same resistance verifying that price point for Ethereum, as you can see very clearly in the screenshot below.
Now Ethereum is trying to break this final resistance so that it can find its new all time high. So, for that, let us look at the screenshot below, where I have shared a zoomed version of the screenshot shared earlier. Now there, we can clearly see that we are actually on the verge of breaking the final resistance. But the question in mind is whether we are going to break it or we are going to see a rejection from this resistance because it is the most strongest resistance for Ethereum, as it is the resistance that will actually take Ethereum to its last cycle all time high.
A lot of people on Twitter are saying that Ethereum will reject, and I believe that rejection is very much possible from here because it is the strongest resistance for Ethereum. In the screenshot below, I have shared the peak value of Ethereum from the last bull cycle, where you can see that above this resistance line, Ethereum traded only for 2 days. So you can understand what impact will happen on the market once it is broken.
So the two scenarios in front of us right now are as follows.
- Firstly, we can get a rejection from this resistance and we can travel down towards the support that can be seen in the screenshot below, where the red arrow is pointing towards it, and that is the level where Ethereum price was 4020- 4060 USD.
- The second scenario obviously is the scenario where Ethereum will break this resistance and create a new all time high. In either of the two cases, we don't have to panic because even a rejection will be considered healthy at this point of time. What I personally feel is that as in the month of September, it is being speculated that rate cuts will happen, and that is going to be positive for the market. So maybe before the rate cuts actually occur, we might see a crash in the market to witness the one last final big liquidation from the market.
So I am going by this idea that we are going to reject from this resistance line and travel downwards towards the 4020-4060 USD support and once the FOMC meeting is live and the rate cuts are announced, we are going to see a massive pump in the market, where the crypto market will actually see its all time high for this cycle.
Before I stop writing, I want to say that I am not a financial advisor and your decisions should be held responsible on your shoulders. Do what you feel is right. I have just shared my opinion based on my fundamental and technical analysis. The market can react in a different manner, and that is why make sure you take your decisions on your own.
One more thing, futures are highly risky at this point of time so maybe you should just stay away from them for sometime at least.
Thank you and happy trading everyone.
Posted Using INLEO