ETH Breaks Out
The resolution from the recent triangle formation highlighted in ETH has seen price triggering the breakout play through 3310.5. The continued recovery in risk appetite, particularly in tech stocks, has helped crypto assets perform much better over recent weeks. With both MACD and RSI bullish here, the market looks primed for further upside while we hold above the broken triangle top. ETH is on course to test the initial target at 3707.5 with 4149 the next upside target thereafter. Price has already retested the broken 3310.5 high, which is holding as support for now in a positive sign for bulls.
Keep An Eye On
For now, cryptos are broadly tracking the rebound in risk assets. With equities pointed higher and commodities receiving a boost also, the near-term outlook looks positive. However, given how precarious the situation in Ukraine is, particularly following the weekend news of the Bucha atrocities, traders must continue to monitor incoming news flow which might see current conditions altered at a moments notice.
In terms of crypto specific news, Ethereum is soon to undergo a significant upgrade which will dramatically reduce ETH issuance, by as much as 90%, driving up the value of existing units. There have been major bullish price forecasts linked to the upgrade with Arthur Hayes, BitMEX founder, calling for ETH to end the year north of $10k.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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.