Current dynamics.
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 economic decline, even leading to a recession in the near future. At the same time, the prospect of accelerating inflation hinders the activity of the U.S. Federal Reserve, preventing officials from starting to lower borrowing costs, and raises concerns among market participants, who are increasingly redirecting their capital from unstable dollars to defensive assets, including digital currencies. 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, will represent a justification for monetary authorities to maintain the interest rate in the range of 4.25-4.50%, which has drawn repeated criticism from the Republican administration of the White House towards the Chairman of the 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 stating that staking on networks using Proof-of-Stake is not considered a securities transaction, significantly increasing institutional investors' interest in the Ethereum blockchain, and contributing to an increase in the volume of coins in wallets, aimed at later using them as treasury assets and staking for passive income. In the past thirty days alone, companies have accumulated about 545,000 ETH worth approximately $1.6 billion, with the largest holder now being the gaming platform SharpLink Gaming Inc., which owns 255,000 coins in its assets.
Meanwhile, the instability of the global economic situation has led to increased investments in Ethereum-ETF: last week, their volume reached $908.1 million, one of the largest figures since the launch of trading instruments.
Support and resistance levels
Technically, prices have exited the long-term downward channel and have risen above the 2968.75 mark (Murray level [7/8]), and are now heading towards targets of 3281.25 (Murray level [+1/8]) and 3437.50 (Murray level [+2/8]). The key level for the "bears" seems to be the 2656.25 mark (Murray level [5/8]), supported by the middle line of the Bollinger Bands, whose breach would incentivize a return to the downward channel and movement towards the 2187.50 area (Murray level [2/8]) and 1875.00 (Murray level [0/8]).
Technical indicators confirm the likelihood of continued upward movement: Bollinger Bands are trending upwards, the MACD indicator is increasing in the positive zone, and the stochastic indicator is flat in the overbought area, which does not exclude the possibility of a correction, although the likelihood of it is limited.
Resistance levels: 3281.25, 3437.50.
Support levels: 2656.25, 2187.50, 1875.00.$ETH