Why is ETH/BTC Holding Up So Well? (Weekly Forecast)

Ethereum has rallied so far this week, erasing some more losses as it crests the $2,800 level, tying last week’s highs. This is bullish, although we have to consider whether or not this is indeed a resumption of the uptrend or a deadcat bounce before another selloff.

(June 3, 2021 8:30 PM EST)

Short-Term:

ETH is up over 50% from its capitulation bottom in late May, challenging last week’s highs and not far from $3,000. Fundamentals remain unchanged and buyers continue to accumulate, so it’s not surprising to see a rebound. There is also a buzz in the crypto space as we head into the 2021 Bitcoin Conference in Miami this weekend which is drawing an impressive list of A-list figures and companies. This could be a “buy the rumor, sell the news” events, but we’ll have to wait and see.

If ETH falls back below $2,500, we could see a drop to $2,000 and a retest of the lows around $1,800, or even the 50 Week EMA around $1,450. If ETH breaks above $3,000, then we’ll look to $3,500 and then $4,400, though this would likely be more related to a breakout in the ETH/BTC chart below.

ETH/BTC:

ETH

Support: $2,500 / 0.06 ETH/BTC.

Resistance: $3,000 / 0.08 ETH/BTC.

Originally published at https://www.publish0x.com.