Ethereum Price Forecast – Ethereum Rallies on Wednesday

Ethereum Forecast Video for 21.12.23

Ethereum Technical Analysis

Ethereum rallied a bit during the trading session on Wednesday, as we continue to see a lot of upward momentum overall, from the bottom of a major consolidation area. All things being equal, this is a situation where traders will continue to look at this as a “buy on the dips” market, and of course Ethereum has a very negative correlation to interest rates. Furthermore, Bitcoin has started to rally rather significantly, and therefore it does make a certain amount of sense that the Ethereum market will follow right along with it. All things being equal, the $2100 level underneath is a major support level, and therefore I think it will be defended.

A pullback at this point in time should offer a bit of value that a lot of people will be willing to take advantage of, therefore it’s probably only a matter of time that we go higher, perhaps breaking above the $2400 level. If we can break above the $2400 level, it’s likely that the market then goes looking to the $2500 level, which is my target. That being said, you have to worry about liquidity and erratic moves during the holiday season, but it’s clear that there is a lot of upward pressure in this market at the moment, and I just don’t see that changing. After all, as long as the Federal Reserve continues to loosen monetary policy, it’s very likely that Ethereum will have a very good 2024 going forward.

In the short term, I like the idea of buying Ethereum on dips, but at the end of the day we have to ask whether or not Ethereum is actually going to be used? What crypto desperately needs is some type of “must-have application” that people jump on. Years have gone by and we’ve yet to see something completely take over the mainstream and heavy use, as most of the time it appears that crypto is simply a solution looking for a problem. Ethereum is the backbone of many other currencies and ecosystems, so Ethereum is a great place to play a bet on what happens with these applications, but so far we have yet to see anything truly take off.