Current dynamics
id$BTC
The unstable situation in the American economy has affected the cryptocurrency market: President Donald Trump's 'hawkish' rhetoric, aimed at raising tariffs on imports from major partners, including major countries like Japan, the European Union, and Mexico, increases the risks of economic downturn, even a potential recession in the near future. At the same time, the prospect of accelerating inflation is hindering 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 reallocating their capital from unstable dollar assets to defensive assets, including digital currencies. Today, at 14:30 (GMT+2), the dynamics of the U.S. currency may be influenced 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 within the range of 4.25-4.50%, which raises repeated criticisms from the Republican administration of the White House towards the Chairman of the U.S. Federal Reserve, Jerome Powell.
As for Ethereum ETH, its increasing popularity among major market players contributes to strengthening 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 the increase in the volume of coins in wallets, with the aim of later using them as treasury assets and staking for passive income. In just the past thirty days, companies have accumulated approximately 545,000 ETH worth about $1.6 billion, with the largest holder now being the gaming platform SharpLink Gaming Inc., which owns 255,000 coins in its assets.
In the meantime, the instability of the global economic situation has led to increased investments in Ethereum-ETF: last week's 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 downtrend channel and 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' appears to be the 2656.25 mark (Murray level [5/8]), supported by the middle line of the Bollinger Bands, the breach of which will motivate a return to the downtrend 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 growth: the Bollinger Bands are trending upwards, the MACD indicator is increasing in the positive area, and the Stochastic indicator is horizontal in the overbought zone, 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.