Welcome back,
ETH has converged into a crucial zone between the 60 Day (white) and 500 Day (orange) Simple Moving Averages. We have not seen a close below the 500 MA since April 21, 2020, and this may represent a reversal area for the downtrend beginning back in November of 2021. We tested this metric with a false break wick just days ago on 03/07/2022, and we are currently retesting support. If support fails, we may see some incredible buying opportunities. The white lines represent high volume nodes where support may be found. IF support fails, you will want to have the levels at the bottom of the page written down. $1700 is a notable low if we go into a bad recession, however that seems quite unlikely.
Although we are certainly experiencing uncertain times amongst war, supply bottlenecks, inflation, and interest rate hike scares, there may still be hope. NATO is largely united against Putin's delusional desires to reform the former Soviet Union, likely because if Russia finds success in Ukraine, the surrounding former soviet countries may be soon to follow. The Russian economy is suffocating, and the longer the war effort is maintained, the more devastating it will be for Russia. One may worry about China's position, however the CCP is 'China first' before anything else. With economic growth slowing and monetary policy still accommodating, there may be bigger problems at hand if China's growth continues to dwindle.
When he speaks on March 16, Jerome Powell may not want to be the one who possibly forces a global recession with the world economy is in its current fragile state, and the war forces the FED to proceed with extreme caution. With markets previously attempting to price in a 50 point base rate hike with extreme volatility, anything over a 25 point rate hike will likely be received very negatively by the markets. This would be great for the bears. For the bulls however, a clean upwards break of this 60MA-500MA zone will likely signal the next bull market is in. The 180 day (blue) MA may act as resistance on the way up, and will also be an important level to transcend.
Summary
You will need to follow the news on the war, we are in extremely headline sensitive times. On March 16, Jerome Powell will hopefully clarify the FED's plan to tackle inflation. Ideally for the Bulls, he will provide clarity, and much needed confidence which the markets have desperately lacked since the end of 2021 (the period when the FED's original plan 'transitory' estimated inflation would revert back towards normalcy.)
Headline war news may catalyze the markets in either direction.
Resistance Levels:
$3,235
$4,028
$4,375
$4,868
Support Levels:
$2,455
$2,322
$2,133
$1,975
$1,830
$1,700
$1,300
Disclaimer:
I am neither licensed nor certified to provide financial advice, and this is posted for entertainment purposes only. I am not responsible for any losses or damages, you are responsible for doing your own research and making your own decisions. Good luck and thanks for reading!
ETH has converged into a crucial zone between the 60 Day (white) and 500 Day (orange) Simple Moving Averages. We have not seen a close below the 500 MA since April 21, 2020, and this may represent a reversal area for the downtrend beginning back in November of 2021. We tested this metric with a false break wick just days ago on 03/07/2022, and we are currently retesting support. If support fails, we may see some incredible buying opportunities. The white lines represent high volume nodes where support may be found. IF support fails, you will want to have the levels at the bottom of the page written down. $1700 is a notable low if we go into a bad recession, however that seems quite unlikely.
Although we are certainly experiencing uncertain times amongst war, supply bottlenecks, inflation, and interest rate hike scares, there may still be hope. NATO is largely united against Putin's delusional desires to reform the former Soviet Union, likely because if Russia finds success in Ukraine, the surrounding former soviet countries may be soon to follow. The Russian economy is suffocating, and the longer the war effort is maintained, the more devastating it will be for Russia. One may worry about China's position, however the CCP is 'China first' before anything else. With economic growth slowing and monetary policy still accommodating, there may be bigger problems at hand if China's growth continues to dwindle.
When he speaks on March 16, Jerome Powell may not want to be the one who possibly forces a global recession with the world economy is in its current fragile state, and the war forces the FED to proceed with extreme caution. With markets previously attempting to price in a 50 point base rate hike with extreme volatility, anything over a 25 point rate hike will likely be received very negatively by the markets. This would be great for the bears. For the bulls however, a clean upwards break of this 60MA-500MA zone will likely signal the next bull market is in. The 180 day (blue) MA may act as resistance on the way up, and will also be an important level to transcend.
Summary
You will need to follow the news on the war, we are in extremely headline sensitive times. On March 16, Jerome Powell will hopefully clarify the FED's plan to tackle inflation. Ideally for the Bulls, he will provide clarity, and much needed confidence which the markets have desperately lacked since the end of 2021 (the period when the FED's original plan 'transitory' estimated inflation would revert back towards normalcy.)
Headline war news may catalyze the markets in either direction.
Resistance Levels:
$3,235
$4,028
$4,375
$4,868
Support Levels:
$2,455
$2,322
$2,133
$1,975
$1,830
$1,700
$1,300
Disclaimer:
I am neither licensed nor certified to provide financial advice, and this is posted for entertainment purposes only. I am not responsible for any losses or damages, you are responsible for doing your own research and making your own decisions. Good luck and thanks for reading!