ETH Edging Higher
The rally in crypto assets is turning into one of the hottest stories in markets as we kick off Q2. Following the heavy liquidations which took place last year and a tricky start to the year around plenty of negative news flow, crypto is seeing a surge in demand currently. Along with the breakout we’ve seen in Bitcoin, Ethereum is now starting to gather strong upside momentum with ETH futures breaking above the 2025.5 level for the first time in a year. The market has been stuck in a heavy side-ways range since July last year, oscillating between support at the 986 level and resistance at 2025.5. However, with price now testing above the range top, the outlook has turned firmly bullish.
Shifting US Rates Outlook
The key driver behind the move has been the sharp shift in the US rates outlook. While Fed rate projection had turned firmly hawkish back in January, just a few months forward the outlook has completely reversed with the market now pricing in rate cuts later in the year in line with growing recession risks. Against this backdrop, a falling US Dollar is creating plenty of support for crypto and should see further gains today and into next week if today’s retail sales data confirms a drop in spending.
Technical Views
ETH
The rally in ETH this year has seen price blowing through resistance at the 1695.5 level with price this week testing above the 2025.5 level for the first time since early last year. This is a key area of the market and while price holds above here, the focus is on a further push higher towards the 2422 level next, in line with bullish momentum studies readings.
.png)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.