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Is $1,500 ETH Still in Play? (Weekly Forecast)

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Crypto Daily FX
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Ethereum has started off the week in the green, bouncing off the short-term bottom around $1,730 and rallying above the $2,000 level, closing the Monday trading session north of $2,100. This is a good turnaround and bounce off of support, but it's early in the week and we'll need to a see a break above $2,300 before we start looking at higher highs.

(June 28, 2021 8:30 PM EST)

Short-Term:

ETH is still above the 50 and 200 Week EMAs, meaning the long-term uptrend is well in-tact, and dips continue to be buying opportunities. There is still downside potential, however, as ETH remains volatile in the face of unsubstantiated FUD such as China bans, Elon Musk tweets, ESG FUD, etc., so don't be surprised to see ETH drop back under $2,000 or even test the 50 Week EMA around $1,550. This would be a major buy zone as I anticipate the long-term HODLers will continue to buy and institutions would jump back in after getting burned in a big way in May-June. Keep in mind the long-awaited EIP-1559 is due to go live in July, making ETH non-inflationary and possibly deflationary, as well as capping gas fees, and a few other network upgrades. This could be a trigger for a rally as the crypto sees a supply shock similar to Bitcoin's halvings.

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If ETH were to continue higher, it needs to break above the 78.6% fib around $2,295 before looking toward $2,500. It's entirely feasible for ETH to lead BTC as ETH/BTC still remains relatively bullish and ETH has outperformed BTC as of late, which is odd after a significant drawdown. However, if BTC were to slide back under $30K, this would almost certainly drag ETH down with it.

ETH/BTC:

ETH/BTC found support at the 0.06 level after briefly piercing it last week, rallying to about 0.061 on the weekly chart. ETH has held up surprisingly well in satoshis and even led BTC today. If ETH/BTC can hold onto 0.06, then we could see ETH rally to 0.07 or 0.08 which might front-run BTC a bit; but don't hold your breath. A break below 0.06 would send ETH down to 0.05 where it would find the upper band of the long-term ascending channel. 0.04 would be a hard floor.

Support: $2,000 / 0.06 ETH/BTC.

Resistance: 78.6% fib at $2,295, then $2,500 / 0.08 ETH/BTC.

Posted Using LeoFinance Beta