Ethereum Trapped in the Cloud
ETH/USD Analysis
Cryptocurrencies are generally having a very good 2023, rebounding from last year's slump. ETH/USD in particular, gains around 55% year-to-date, but heads towards the conclusion of mixed month, as the advance is contained by key tech levels and the USDOLLAR advance.
Markets have been moderating their optimism for an end to the Fed's monetary tightening and Friday's hot PCE inflation report accelerated this shift in expectations. CME's FedWatch Tool now assigns the highest probability to another 0.25% rate hike in June. [1]
This hawkish repricing has boosted the greenback and capped Ethereum's rise, which has been trapped within the daily Ichimokou Cloud for the past several days, unable to stray away from critical 23.6% Fibonacci of the 2021-2022 drop. This creates risk for a decline towards the ascending trend line from the 2022 lows (at around 1,600), although further losses that would tackle 1,367 would require a strong catalyst.
Despite today's slide and May's lackluster performance, ETH/USD still runs a profitable week and bulls are at the driver's seat above the EMA200. Daily closes above the critical 1,909-40 keep the road open for new 2023 highs (2,136) and could lead the popular altcoin to the 38.2% Fibonacci. However, it does not inspire confidence at this stage for larger gains above it.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 07 May 2026 https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html |
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