Due to market uncertainty, most top-level cryptocurrencies like Bitcoin and Ethereum have seen an outflow. Most retail investors expected a bull rally after the Merge update, but they are dissatisfied with the continuation of the downtrend. However, this update makes the network more sustainable in the long term. It also helps to add new upgrades and features to the protocol to make it faster, more scalable, and more user-friendly.
After the FED rate hike last month, the crypto market is preparing for the next rate hike in the upcoming days. That is why we do not think ETH will start the bull rally in the next few months. However, it is an ideal time to invest for the long term because Ethereum has a bright future and a wide range of use cases to diversify its portfolio.
The investors are accumulating the coin, and it is time for the retailers to accumulate coins at this stage. Many experts think ETH programmers have selected the wrong time to launch the update because, throughout the year, we have seen an outflow of money towards safer assets like government bonds.
Central banks are hiking interest rates to control inflation, and cryptos, especially Ethereum, can be a victim of this uncertain time. It is true that the bull rally has been postponed, but it will begin. Many experts believe that ETH will lead the next bull rally. But is that true?
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At the time of writing this post, ETH was trading around $1358, and the candlesticks are forming in the upper Bollinger Bands with positive RSI and MACD that suggest bullishness for the short term.
However, on the daily chart, $1450 is a resistance, and the price may come down to the level of $1250 again. It is not an ideal time to invest for the short term because the Ethereum price is around the resistance. You can invest if it comes near the support level.
On the weekly chart, candlesticks are forming in the lower half of Bollinger Band following the long-term downtrend. Ethereum is forming lower highs and lower lows that suggest bearish momentum for the long term. We do not think it is an ideal time to invest for the long term because it may break the level of $1250 and come to the level of $1000.