Current dynamics
The ETH/USD pair has seen a notable increase in value last week, reaching its highest levels in February in the area of 3080.00 the previous day.
The unstable situation in the U.S. economy supports the cryptocurrency market: President Donald Trump's "hawkish" rhetoric, aimed at raising tariffs on imports from key partners, including major countries like Japan, the European Union, and Mexico, increases the risks of an economic downturn, and even a transition to recession in the near future. At the same time, the prospect of rising inflation hinders the activity of the U.S. Federal Reserve, preventing officials from starting to lower borrowing costs, and raising concerns among market participants, who are increasingly redirecting their capital from the unstable dollar to defensive assets, including cryptocurrencies. Today, at 14:30 (GMT+2), the dynamics of the U.S. currency may be affected by inflation statistics: growth is likely to be recorded from 0.1% to 0.3%, and from 2.4% to 2.6% annually, with the monthly core value adjusted from 0.1% to 0.3%, and the annual value from 2.8% to 2.9%. This, in turn, would represent an excuse for monetary authorities to maintain the interest rate in the range of 4.25-4.50%, which raises frequent criticisms from the Republican administration of the White House towards the Chairman of the U.S. Federal Reserve, Jerome Powell.
As for the Ethereum ETH currency, its increasing popularity among major market players contributes to enhancing its position. It is noted that at the end of May, the U.S. Securities and Exchange Commission (SEC) issued a ruling that storage in networks using Proof-of-Stake is not considered a securities transaction, significantly increasing institutional investor interest in the Ethereum blockchain, and contributing to an increase in the volume of currencies in wallets, with the aim of later using them as treasury assets and storage for passive income. In the last thirty days alone, companies have gathered around 545 thousand ETH worth approximately $1.6 billion, and the largest holder now is the gaming platform SharpLink Gaming Inc., which owns 255 thousand coins in its assets.
Meanwhile, the instability of the global economic situation has led to increased investments in Ethereum-ETF: with a volume last week of $908.1 million, one of the largest figures since the launch of trading instruments.
Support and resistance levels
Technically, prices have exited the long-term bearish channel and risen above the mark of 2968.75 (Murray level [7/8]), and are now heading towards targets of 3281.25 (Murray level [+1/8]) and 3437.50 (Murray level [+2/8]). The main level for the "bears" seems to be the mark of 2656.25 (Murray level [5/8]), supported by the middle line of the Bollinger Bands, whose breach will trigger a return to the bearish channel and move towards the area of 2187.50 (Murray level [2/8]) and 1875.00 (Murray level [0/8]).
Technical indicators confirm the possibility of a continued rise: the Bollinger Bands are trending upwards, the MACD indicator is increasing in the positive zone, and the stochastic indicator is horizontal in the overbought area, which does not exclude the possibility of a correction, although the likelihood of it is limited.
Resistance levels: 3281.25, 3437.50.
Support levels: 2656.25, 2187.50, 1875.00.
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