ETH Pushing Back Up

Ethereum prices remain in the green today with ETH futures continuing their recovery rally off the recent drop down towards 2800. For now, the market is down around 23% from the highs posted in March. However, the move lower has been conventionally corrective in nature so far, suggesting that the broader bullish bias remains. The market held the retest of the broken bull channel highs with the current correction framed by a contracting triangle pattern (can be viewed as a bull flag) suggesting an eventual break higher remains the preferred play for now.

Broader Crypto Moves

In terms of the broader backdrop, the correction in ETH has largely been a function of the correction in Bitcoin. With BTC losing bullish momentum, crypto prices have generally been weaker across the board. With the Bitcoin halving event having passed now, however, the general view is that BTC will begin to climb again in coming months, as we’ve seen in previous post-halving cycles, which should help drive ETH higher too.

ETH ETFs?

In terms of ETH-specific drivers, the key story to monitor is optimism around expected ETH ETFs. On the back of the US regulator approving BTC ETFs, traders now expect similar ETH ETFs to be proposed, likely this year. We’ve already seen Hong Kong approving ETH ETFs in principal. If we start to hear chatter of applications being prepared in the US this will be a big bullish driver for ETH, opening the market up to institutional access.

Technical Views

ETH

The correction lower from the 4003 level has seen the market breaking down below the 3582.5 level, stalling for now into a retest of the broken bull channel. The correction remain within the contracting triangle for now, keeping the focus on an eventual break higher. To the topside, 4444 is the key target for bulls. To the downside, 2633 is the next key support to note.