Ethereum Defends Key Technical Levels, Trying to Pause Two-Day Decline

ETH/USD Analysis

The Cryptocurrency had the wind in it sails on Monday from a three-week profitable streak and registered three month highs 3,584, potentially helped by the disclosure of Elon Musk's around 9% stake in social media platform Twitter and his seat at the Board of Directors [1]. Dogecoin had surged on the news.

The Tesla CEO who has around 80 million followers on the platform, is quite outspoken around Cryptocurrencies, often making relevant tweets. In mid-March he had said that "I still own & won't sell my Bitcoin, Ethereum or Doge fwiw". [2]

The last couple of days though have been negative due to broader risk aversion and Dollar strength from the Fed's hawkishness, with ETH/USD eliciting support from key technical levels, trying to cover the day's initial losses.

In particular, it defends the 38.2% Fibonacci from the March Low/April High advance and the upper border of the Daily Ichimoku Cloud, ahead of the EMA200 which sits a bit lower. If the correction remains contained at these levels, then this could lead to higher highs (3,584), but fresh impetus may be needed for that.

On the other hand the Cryptocurrency is having a bad week which has put it in a precarious position and creates risk for a breach of the aforementioned EMA200 (30,065). Daily closes below it, would shift immediate bias to the downside, but the 2,730-12 has the ability to contain larger declines.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 07 Apr 2022 https://twitter.com/elonmusk/status/1503222294277197829

2

Retrieved 01 Jul 2022 https://d18rn0p25nwr6d.cloudfront.net/CIK-0001418091/8e6028bd-1f8c-4521-b3bd-3a69e84a23d0.pdf

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