Over the past week, the ETHUSD pair has shown more stability than other cryptocurrencies. Its secret lies in renewed traders’ interest in Ethereum exchange-traded funds. Capital inflows into ETFs are an important positive signal, as they draw attention and fresh investment to the asset. If this trend persists, ETHUSD could maintain upward momentum despite broader volatility in the crypto market.
The key risk factor is the US macroeconomic landscape. Robust Nonfarm Payrolls and stubborn inflation make a rapid transition to the Federal Reserve’s (Fed) easing cycle less probable. Elevated interest rates underpin the US dollar and Treasury yields—typically a toxic cocktail for risky assets, including cryptocurrencies. However, if May’s Consumer Price Index (CPI) slows, market hopes for rate cuts could be rekindled, offering support to Ethereum.
From a technical perspective, ETHUSD is now consolidating in the $1,500–$1,700 range after its recent drop. This setup may hint at rising buying demand and the formation of a local bottom. Another clue pointing to a potential upward reversal is the Relative Strength Index (RSI), which has been slowly climbing above the 50 threshold—a clear bullish sign.
The final recommendation:
— Buy ETHUSD at the current price, aiming for $1,950 within a month.
— Place a Stop Loss order at $1,500, just below support, to manage risks in case the pair moves in the opposite direction.
This content is for informational purposes only and is not intended to be investing advice.
