Ethereum managed to post two consecutive profitable weeks, rebounding from the recent slump caused by the collapse of crypto exchange FTX. It was also helped by the demise of the USDOLLAR, on prospects of slower pace of hikes by the Fed.
Expectations around the bank's tightening path have firmed again though, following a series of strong economic data from the US, leading the greenback to a solid weekly start. As such, ETH/USD slides after its double failure at the critical 1,300 region, which we had highlighted in our last analysis.
This comprises of the EMA200 and the 38.2% of the November high/low decline, with their rejection leaving the popular altcoin exposed to 1,153. This also creates scope for lower lows towards 995.00, although this may prove elusive in the near term.
On the other hand, the Dollar loses steam today and this could provide ETH/USD the opportunity to take another crack at 1.294-1,311. Daily closes above this area would pause downside bias and could open the door towards 1.445, but a catalyst would be required for that.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.