In the early American session, ETH/USD, (Ethereum) is trading above 4/8 murray with a slightly bullish bias, consolidating above the SAM of 21, although the price is trapped within a rising wedge on a 4-hour chart.
At a fundamental level, according to the CoinShares weekly report, significant institutional investments of $ 74 million was recorded last week as investors tried to take advantage of the crypto market crash in which many crypto assets lost more than 50% of their value.
However, the recent push from ETH has led to further speculation as to whether Ethereum is gearing up to overtake Bitcoin. Currently, Ethereum outperforms the flagship cryptocurrency in terms of transaction count, volume and fees, and trading volume.
According to CoinGecko, ETH / USD is currently the second most traded crypto asset - it has a daily volume of $ 38.8 billion, just behind Tether's $ 103 billion.
In view of the fact that the market is betting that Ethereum in the short term will reach levels of $ 4,000, this could be the consolidation and accumulation phase for a new bullish wave. So, the price could surpass its new registered maximum.
In the chart, you can see that ETH / USD is moving inside an uptrend channel, supported by the eagle indicator that is showing a bullish signal. The break of 2,700 could open the door for the cryptocurrency to the 200 EMA zone of about $ 3,125.
If ETH makes a technical bounce in the 2,500 zone or the uptrend channel, we recommend buying with targets at 2,800 and 3,125. As long as it remains above 4/8 of a murray, the outlook will remain bullish in the short term.
Support and Resistance Levels for June 02 – 03, 2021
Resistance (3) 2,903
Resistance (2) 2,819
Resistance (1) 2,694
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Support (1) 2,607
Support (2) 2,482
Support (3) 2,395
