Market Spotlight: Ethereum Looking To Breakout

32510 market spotlight ethereum looking to breakout

Risk assets are climbing today on tentative optimism over Russia/Ukraine tensions. Reports that Ukraine is seeking emergency talks with Russia, alongside claims that Russia is still open to a diplomatic resolution, have raised hopes that a military conflict can be avoided. These hopes have been further strengthened by Russian headlines citing the return of some Russian troops from the border with Ukraine.Crypto prices have been well helped by these developments and, should a de-escalation of tensions continue, this would pave the way for a much broader rally. Looking at the ETH price chart, following the breakout above the bear channel from all-time highs, price has since stalled into a test of the 3310.5 level. However, with price finding renewed demand at the 2903.5 level, the focus is once again on a push higher. Bulls can look for a break of the 3310.5 to target a run up to 3707.5 initially and 4149 thereafter.Keep An Eye OnThe key driver for this trade near term will be risk flows. If tensions between Russia and Ukraine do de-escalate and a solution is agreed upon which includes the return of all Russian military from the border area, this will drive risk sentiment higher, lifting ETH. However, if a solution cannot be agreed upon and tensions remain, or worsen, then this will drive risk assets heavily lower near term.

Source: Tickmill

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