Ethereum is a leading decentralized blockchain platform with many use cases, so crypto enthusiasts are curious about the future potential of ETH. At the time of writing, ETH was facing a resistance of around $1650. Overall, it has been consolidating between $1K and $2K. Is it the right time to invest in Ethereum?
We do not think so because if it faces resistance, Ethereum will come to the level of $1100 again, and that would be an ideal time to accumulate more ETH if you have not accumulated it in the last six months.
Technically RSI is around 62, MACD is neutral, and candlesticks are taking support around the baseline of BB, which suggests a consolidation and further correction in the next few weeks. However, the token can be long-term bullish if ETH breaks the resistance. Will Ethereum break the resistance? Click here to learn!
On the weekly chart, candlesticks are forming in the upper Bollinger Bands, but Ethereum formed a higher high that suggests a bullishness after four green candles. However, the interesting thing is that the last two weekly candles are indecisive Doji, which also suggests selling pressure.
We think it is a sign of profit booking at a higher level. As a result, the ETH price may come down to $1100 again. Bollinger Bands increases volatility with a bullish MACD, and RSI suggests a correction again.
You can expect a correction in the next two months, so you must prepare to accumulate ETH for the long term. If it forms a higher high again, it can signify long-term bullishness.
Interestingly, inflation plays a vital role in setting the volatility in digital assets like Bitcoin and Ethereum. In the last month, Ethereum has gained significant value. Still, inflation and recession can postpone the next bullish rally in 2023 because when inflation is lower, digital assets are scarcer, increasing demand. In high inflation, the demands are lower, so cryptocurrency may move sideways (such as in 2022).
You have to prepare for a volatile situation in 2023 and should not invest in fear of missing out. You will get enough opportunities to accumulate ETH in the long term.