Current trend
This week, the ETH/USD pair continues to add value and has now risen to the area of 3235.00, which corresponds to four-week highs.
Experts do not have a consensus on the drivers of the current upward dynamics, but many of them believe that the growth is caused by the enthusiasm of investors against the background of the release of January data from the American labor market. The indicators turned out to be significantly better than preliminary estimates and confirmed the overall resilience of the American economy to the consequences of the pandemic caused by the COVID-19 Omicron strain. This, in turn, aroused interest in risky assets, including digital ones, on the part of bidders.
As for the ETH positions, in the long term they continue to be supported by the expectation of the merger of the Ethereum and Ethereum 2.0 networks and the transition to the Proof-of-Stake (PoS) algorithm. The main operating network is still experiencing significant problems due to high fees and limited bandwidth, which specialists cannot solve in any way. The other day, Ethereum founder Vitalik Buterin and lead developer Tim Beiko proposed a new improvement option – to use transactions with a large amount of binary data ("blob-carrying transactions"). This measure is seen as temporary, for a period until the Ethereum 2.0 network becomes fully functional. The launch of the new function may take place after the next hard fork.
Support and resistance
Technically, the price of the ETH/USD pair is testing the mark of 3125.00 (Murray [2/8]), fixing above which will give the prospect of growth up to 3750.00 (Murray [4/8]). The key level for the bears is 3000.00 (Fibo retracement 38.2%), the breakdown of which will give the prospect of a decline to 2700.00 (the middle line of the Bollinger Bands) and 2500.00 (Murray [0/8], Fibo retracement 50.0%). The indicators do not give a single signal: the MACD histogram is preparing to move into a positive zone and form a buy signal, and the Stochastic is preparing to leave the overbought zone and form a sell signal. In general, despite the upward correction, the downtrend potential does not look exhausted yet.
Resistance levels: 3125.00, 3437.50, 3750.00.
Support levels: 3000.00, 2700.00, 2500.00.
Trading tips
Short positions are relevant below the level of 3000.00 with targets at 2700.00, 2500.00. Stop-loss – 3130.00. Implementation period: 5-7 days.
Long positions should be opened from the 3270.00 level with a target at 3750.00. Stop-loss – 3000.00.
Timeframe: Weekly
Recommendation: SELL STOP
Entry point: 2985.00
Take Profit: 2700.00, 2500.00
Stop Loss: 3130.00
Key levels 2500.00, 2700.00, 3000.00, 3125.00, 3437.50,
Alternative scenario
Recommendation: BUY STOP
Entry point: 3270.00
Take Profit: 3750.00
Stop Loss: 3000.00
Key levels 2500.00, 2700.00, 3000.00, 3125.00, 3437.50,
