Ethereum price remains under the bulls’ strength despite the persistent recession concerns. While I expect rick aversion to curb the crypto’s gains into the weekend and beyond, I am of the opinion that the bullis trend will remain intact.
Fundamentals
Investors entered 2023 optimistic that the worst of the crypto witner that defined 2022 was over. Indeed, the rise in risk appetite was largely behind the rallying recorded in the year’s initial weeks.
A look at ethereum price movements indicate that the bulls’ strength is still at play. Even so, investors are cautious over risk assets and the broader global economy. For instance, on Thursday, the 2-year Treasury yields rose above the 10-year yields by the broadest margin since the 1980s.
The inverted yield curve has heightened concerns over the US economy’s ability to withstand the additional interest rate hikes that the Fed may approve in coming months. In the ensuing sessions, cues over the health of the US economy will be infleuntial in the broader crypto market.
Ethereum price prediction
Ethereum price appears set to record its second consecutive week of losses. Prior to that, it had been in the green in the initial four weeks of 2023. However, while the crypto’s rallying was more aggressive at the beginning of the year, it has been rather range-bound for about a month now. Granted, it remains under the control of the bulls as it continues to trade above the crucial support zone of 1,400.
A look at its daily chart indicates that the mood in the market is rather neutral. With regards to the technicals, it has continued to trade above the 50-day EMA although Thursday’s drop placed it below the short term 25-day EMA. Besides, it is at a neutral level with an RSI of 45.
As the crypto market enters the weekend, the range between the 50-day EMA at 1,500 and the resistance zone at 1,610 will be worth watching. Even with the probable rallying past the range’s upper border, I still forecast ethereum price to find resistance at 1,650 for a while longer.
Nonetheless, I remain cautiously bullish on the altcoin. As such, this thesis will be valid for as long as ETH/USD continues to trade above the support level of 1,415.
