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ETH Recovery Stalls
Ethereum Futures continue to hold around the mid-way point of the recent highs and the corrective low put in last week. The second-largest traded crypto asset by market-cap followed Bitcoin lower from recent highs as profit taking and speculative selling kicked in around the FOMC. A stronger US Dollar saw crypto longs unwinding initially. However, with USD strength fading and focus shifting back to the Fed’s projections for three rate-cuts this year, crypto prices have since rebounded.
Bitcoin Impact
Key to determining where ETH prices head next will be mainly down to Bitcoin. If institutional demand for ETFs picks up again following the upcoming April halving event, this should lead a fresh wave of bullish sentiment across crypto markets, leading ETH higher. The recent pullback offers better bullish opportunities, with industry data reflecting increased accumulation over the weekend.
Ethereum Outlook
However, if demand fails to pick back up and we don’t see a new high through the Bitcoin halving event, crypto prices look likely to correct further lower near-term. Medium term though, any deeper pull-back should find stronger support with prices still expected to end the year higher if the Fed pushes ahead with its three projected rate cuts. Any renewed chatter around expected ETH ETF application will also be firmly bullish for ETH, particularly if we see any funds officially pursuing this.
Technical Views
ETH
The correction lower in ETH has stalled for now ahead of a retest of the broken bull channel. Price is now attempting to get back above the 3582.5 level. Above here, focus is on a fresh test of the 4003 highs with 4444 sitting above as the next bull target.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.