Current trend

Last week, the ETH/USD pair had ambiguous dynamics: after the launch of spot Ethereum ETFs, the price adjusted to the area of 3090.00, but is currently actively recovering positions.

Recall that on June 23, the Chicago Board Options Exchange (CBOE) and the New York Stock Exchange (NYSE) began trading nine new digital instruments represented by 21Shares, Bitwise Asset Management, Franklin Templeton, Invesco, Fidelity Investments, BlackRock, and VanEck. According to Bloomberg, the trading volume on the first day amounted to 1.08 billion dollars, but after the initial growth of the Ethereum ETFs, an outflow of investments began, amounting to 341.8 million dollars by the end of the week. The price of the token itself has also significantly decreased under the influence of the investor's "Sell-the-news" strategy, which is similar to the situation that occurred on the market after the launch of the Bitcoin ETFs. Experts believe that the pressure from sellers will not last long, since the very fact of launching new exchange-traded funds based on digital assets has a positive influence on the cryptocurrency market. According to representatives of the BlackRock trading platform, investors are showing great interest in innovations in the cryptosphere, which is why such large financial institutions as Morgan Stanley, Wells Fargo, and UBS are currently exploring the possibility of adding them to model investment portfolios that are offered to clients. This work should be completed by the end of the year, after which the market will receive additional support.

Now, the ETH/USD pair has resumed growth against the background of statements by the US presidential candidate from the Republican Party Donald Trump and the growing likelihood of a September interest rate cut. Speaking at the Bitcoin 2024 conference in Nashville, Trump promised, if elected, to stop the sales of BTC, which the government currently has, and transfer them to a strategic reserve, as well as make the United States the "crypto capital of the planet" and replace the current chairman of the Securities and Exchange Commission (SEC) Gary Gensler.

Meanwhile, price pressure in the American economy continues to weaken, which in the near future may lead to a transition to easing the monetary policy of the US Federal Reserve, as well as to the growth of assets alternative to the dollar. All these factors strengthen the position of cryptocurrencies and will contribute to continued price growth in the medium term. 

Support and resistance

The price is trying to break above the central line of Bollinger Bands (3350.00) to continue rising to the levels of 3593.75 (Murrey level [7/8]) and 3750.00 (Murrey level [8/8]). The key for the "bears" is the support zone of 3125.00–3085.00 (Murrey level [4/8], 38.2% Fibonacci retracement), the breakdown of which will allow the decline to resume at 2812.50 (Murrey level [2/8]).

Technical indicators confirm the likelihood of further growth: Bollinger Bands and Stochastic are reversing up and MACD is at the zero line, its volumes are insignificant.

Resistance levels: 3350.00, 3593.75, 3750.00.

Support levels: 3085.00, 2812.50.

Trading tips

Long positions can be opened above the 3350.00 mark with targets of 3593.75, 3750.00 and stop-loss of 3200.00. Implementation period: 5–7 days.

Short positions can be opened below the level of 3085.00 with the target of 2812.50 and stop-loss of 3220.00.