Ethereum, as well as Bitcoin and other major cryptocurrencies, move in a tight range lately. That is, a tight range for the cryptocurrency market, where the price action is more active than on the traditional markets.
Nevertheless, the market is in a waiting mode. As Bitcoin found support at the $32,000 area, so did Ethereum, but at the $2,200. The correlation between the two digital assets remains in place, even though Ethereum decoupled from Bitcoin in the last months, in the sense that it rallied more during the cryptocurrency market frenzy.
Now that Elon Musk turned against Bitcoin on the grounds that it is consuming enormous amounts of energy, Ethereum suffers in sympathy. One should be aware of the tight correlations in the cryptocurrency market, and the fact that Bitcoin, like it or not, leads the price action. In other words, it is very unlikely to see Bitcoin dropping, say, 5%, and Ethereum gaining 5%. Hence, when Bitcoin suffers, Ethereum and other digital assets suffer too.
Ethereum Technical Analysis
The technical picture shows a tight range on the Ethereum chart. The key levels here are $2,200 and $3,000. Both bulls and bears have something to trade, on a daily close above, or below the range. The stop should be set at the opposite level, and the take profit calculated by using a risk-reward ratio of 1:2.
Ethereum Price Forecast
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