Image Source: Pixabay
ETH Pauses… For NowSimilar to the price action we’re seeing in Bitcoin, Ethereum is paused for now at the highs of the recent rally. ETH futures have seen a more than 75% rally off the YTD lows, with price trading up to its highest level since December 2021, eclipsing the 202 highs. Given the velocity of the move, some consolidation and correction are to be expected and unless we see any meaningful shift in the macro environment, ETH looks likely to continue higher near-term.
Bitcoin ImpactInstitutional demand for BTC ETFs is bolstering optimism that similar ETFs will soon be available in Ethereum. Speculation over this issue has been a key driver of the current rally but so too has the drift lower in USD. With recent US data hitting a soft patch, Fed easing expectations have once again come into the spotlight, boosting risk assets across the board, including crypto.
US Jobs Data DueLooking ahead, the focus will be on US jobs data tomorrow. If we see a drop in employment reading, as forecast, this should be firmly bearish for USD near-term allowing crypto room to run higher. With the April halving event on the horizon in BTC, continued demand for BTC should also keep ETH supported here. Only a firm upside surprise in tomorrow’s data is likely to meaningfully dent the current rally.
Technical ViewsETH
For now, the rally in ETH has paused into a test of the 4003 level. With momentum studies bullish, the focus remains on the further upside with the 4444 level the next target for bulls while 3582.5 holds as support. Should we slip back below this level, 2633 will be the next key support to note. More By This Author:Gold Commentary – Thursday, March 7Bitcoin Commentary – Wednesday, March 6Apple Commentary – Wednesday, March 6
