(DAILY NOTION): ETH/USD: A Glimmer of Hope Appears for the Bulls, Next Mover: Risk-On Sentiment in the Market

02 Feb 2021, 10:20 · Views 258

Source: Yahoo Finance

ETH/USD is having a good start to February, as it has been progressively rising from low of $1,274.90 hit in the early trading hours of Feb 1 to the current price of $1,377.70. It is currently trading above the 50-day Moving Average (MA), as indicated by the purple line. However, the Moving Average Convergence Divergence (MACD) is now pointing towards a bearish reversal; and this is reflected in the Relative Strength Index (RSI) which has dipped from an overbought condition of 87 to 55.

Analyst Anil Panchal from FX Street believes the key support levels for the bears to take are at $1,205, $1,200, and $1,006. Meanwhile, on the upward trajectory, key resistance levels lie at $1,417, $1,477, before aiming for the psychological magnet of $1,500.

Meanwhile, analyst John Isige from FX Street pointed out the formation of an inverse head-and-shoulders pattern on the three-day ETH/BTC chart, which indicates a bullish run could be on the way.

Market sentiment could take cues from Peter Brandt, a prominent investor who is looking to convert a large amount of his Bitcoin holdings into Ethereum. However, in the nearer term, a risk-on sentiment could emerge in the market as the GameStop saga appear to be dwindling down (for now).

Although President Biden’s discussion with the Republican leaders yesterday to agree on the stimulus package did not achieve a mutual agreement, a statement via the White House Press Secretary conveyed Biden’s hope to push through the Rescue Plan. The Republicans do not agree to the massive size of Biden’s stimulus package amounting to $1.9 million, on concerns that it could pose damage to the already fragile economy and have since put up a counteroffer of $618 billion instead.

Overall, it appears to be a hopeful start for the ETH/USD bulls at the beginning of the new month, so let’s see how far the bulls can march ahead for the rest of the month.

ETH/USD (as of Feb 2, 2021, 9.50 a.m., GMT +8) - $1,377.70

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