The market value of Ethereum rose above the $3,180 bar. It needs to go above $3,250 if it will stand a chance of rising higher in the short term.
Ethereum is trading higher than the marked $3,200 resistance and the 100 hour moving average. Whereas, there is a major trend to rise and it is building up support for almost $3,190 on an hourly basis.
Ethereum is likely to keep rising once there is a breaking over the $3,250 resistance.
After steadily rising above $4,100 as at December 27, Ethereum continued to oscillate from $2,900 to $4,000 and other figures in between.
The premium cryptocurrency had traded around $3,800 up until last week Wednesday when prices suddenly began to fall and went on during the weekend up till Monday. It is the first time Ethereum would drop under $3,000 since it last fell in September.
The latest slide in Ethereum comes after a depressing report on jobs last week, and reports from the American Federal Reserve Board meeting that suggests that the central bank may start reducing activities to push up the country’s economy as it continues to improve.
Other reasons for the instability and sliding prices are the U.S. trying to navigate new economic realities occasioned by the Omicron COVID-19 variant; fresh statements by Powell Jerome, the Federal Reserve Chairman, expressing concerns over the state of the country’s economy; and policy considerations by American policy making bodies such as the SEC, over cryptocurrency regulations as expressed by the Chairman Gensler Gary.
For those worried about the market volatility, some experts have advised observers and investors to overlook the current instability as it is so with many investments focused on the long term. They cautioned that even the recent increase in price does not translate to the volatility going forever.
The major concern to be addressed is that: are investors and Ethereum holders going to keep having to experience large-scale growth?, asked Schnieder Jeremy, an investment expert. He answered that absolutely nothing in the basics of trading cryptocurrencies says the answer is a yes.
He added that there is nothing to assure that any cryptocurrency’s value will either increase or decrease as many experts will advise that you don’t invest over 5% of your investment fund into cryptocurrencies. Schnieder emphasized that investors should never buy cryptocurrencies at the detriment of meeting other monetary obligations such as settling debts or saving against retirement.
Once those criteria have been met, you can easily overlook crypto market volatility and focus on the long term.