ETH/USD Analysis
Cryptocurrencies are generally having a very good 2023, rebounding from last year’s slump. ETH/USD in particular, gains around 55% year-to-date, but heads towards the conclusion of mixed month, as the advance is contained by key tech levels and the USDOLLAR advance.
Markets have been moderating their optimism for an end to the Fed’s monetary tightening and Friday’s hot PCE inflation report accelerated this shift in expectations. CME’s FedWatch Tool now assigns the highest probability to another 0.25% rate hike in June.
This hawkish repricing has boosted the greenback and capped Ethereum’s rise, which has been trapped within the daily Ichimokou Cloud for the past several days, unable to stray away from critical 23.6% Fibonacci of the 2021-2022 drop. This creates risk for a decline towards the ascending trend line from the 2022 lows (at around 1,600), although further losses that would tackle 1,367 would require a strong catalyst.
Despite today’s slide and May’s lackluster performance, ETH/USD still runs a profitable week and bulls are at the driver’s seat above the EMA200. Daily closes above the critical 1,909-40 keep the road open for new 2023 highs (2,136) and could lead the popular altcoin to the 38.2% Fibonacci. However, it does not inspire confidence at this stage for larger gains above it.
