Crypto bulls are large and in charge so far this week!
Will the upswing break ETH/USD’s downtrend on the 4-hour chart?
Or are we just seeing an opportunity to short at a better price?
ETH/USD has been chilling below the $1,800 mark since last week after Ethereum’s Beacon Chain underwent a blockchain reorganization (read: forked for a while) in response to potential security threats.
Luckily for the bulls, risk-taking in the equities and currency markets finally trickled into the crypto space and now major cryptos like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Cardano (ADA) are enjoying decent intraday gains .
Can ETH bulls sustain their momentum this week?
ETH/USD is now fast approaching the $1,950 area that lines up with the 61.8% Fibonacci retracement of last week’s downswing and a key support in late May.
As you can see, $1,950 also lines up with a descending trend line as well as the 100 SMA on the 4-hour time frame.
Note that the most recent candlesticks point to sustained bullish pressure. Unless there’s a major catalyst, we could see ETH/USD breaking above the trend line and even the $2,000 level.
But don’t bet the farm just yet!
You shouldn’t bet the farm EVER, but you gotta be extra careful with Ethereum because it’s not out of the woods yet.
For one thing, we haven’t gotten deets on the Beacon Chain glitch so we don’t know how much it has impacted The Merge scheduled in August.
And then there’s the overall market sentiment. With major central banks still raising rates and PMI reports still pointing to slowdown in economic activities, it would be a while before we see sustained buying of “risk” assets like crypto.
Good luck and good trading a trend pullback or a breakout on ETH/USD!
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