ETHUSD is currently trading at $1,750—not far from the 1.5-month resistance level. The pair managed to lick some of its wounds thanks to a weakening dollar, which came under pressure following an unexpectedly sluggish labor market report. This environment has revived investors’ interest in high-risk assets.
In general, the macroeconomic landscape in the United States has grown increasingly supportive of cryptocurrencies. The latest data revealed a cooling labor market and slowing economic activity, reinforcing expectations of the Federal Reserve’s (Fed) softer monetary stance. Investors appear to be more convinced of rate cuts in the near term—a favorable scenario for riskier assets, as lower borrowing costs tend to boost liquidity in the financial sector and attract capital to cryptocurrencies.
Nevertheless, headwinds persist, with the key one being a new wave of escalation in the Middle East. Geopolitical jitters often spoil risk appetite and trigger a flight to safety—particularly into the dollar and US government bonds. Under these circumstances, cryptocurrencies, including Ethereum, tend to underperform due to their lack of stability. If the Middle East crisis continues to expand and tensions remain elevated for longer, investors could keep taking profits on digital assets, raising the odds of a deeper correction in ETHUSD. Meanwhile, demand for safe-haven assets is likely to stay strong, capping the pair’s upside potential in the short run.
The final recommendation:
— Sell ETHUSD at the current price of $1,750, targeting $1,500 within a month.
— Place Stop Loss at $1,850, just above resistance, to manage risks if the market plays against us.
This content is for informational purposes only and is not intended to be investing advice.
