Following the news of BlackRock's submission for a Bitcoin ETF on June 15th, Ethereum mirrored the surge in value of Bitcoin, rallying from the 1620 level to the 2029 high. Despite the uncertainty in the interest rates expectations and the regulatory crackdowns in recent weeks and months, Ethereum's resilience remains noteworthy. However, the rejection from the 2029 high and the selloff into the 1823 level despite the positive risk sentiment in the markets, might be a bad omen for the bulls.
Ethereum Technical Analysis – Daily Timeframe
On the daily chart, we can see that the price got rejected from the 2029 resistance and pulled back to the recent swing low at 1823 level and the 50% Fibonacci retracement level. This is where the buyers should start to pile in with a defined risk below the level and target a breakout of the 2029 resistance. Alternatively, the buyers may wait for the price to come all the way down to the trendline where they will have an even better risk to reward setup.
Ethereum Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we had a big divergence with the MACD with the last push into the 2029 high. This is generally a sign of weakening momentum often followed by pullbacks or reversals. In this case, we got a pullback into the 1823 support where we are likely to find the buyers. More conservative buyers may want to wait for the price to break above the downward trendline to pile in and target the 2029 resistance.
Ethereum Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a support area at 1852. A break below the level should see more sellers piling in to target the 1816 support. Alternatively, if the price were to rally from here, the sellers may lean on the trendline and the 61.8% Fibonacci retracement level with a better risk to reward setup and target the 1816 support.
Upcoming Events
Today, the Fed is expected to hike by 25 bps, but the market will be more concerned with hints about the next moves. Tomorrow, we will see the latest US Jobless Claims report where a big miss should weigh on the risk sentiment and take Ethereum lower, while a big beat should support the price in the short-term. We conclude the week with the US PCE and ECI reports on Friday where the market is likely to focus more on the wages data given the tightness in the labour market.
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