Ethererum (ETH/USD) Weekly Review
The ETH/USD crypto pair failed to stop its previous day’s losing streak and remained depressed around below $2,700 marks. The buyers could not climb above the daily high of $2889 level as the Ethereum price hit the daily low at $2639. ETH/USD is hovering at $2,672.58, so it may take a few days to catch up above the $3000 resistance level. As we know, its price has not experienced any major pullbacks yet and may use the 9-day M.A. for support if it happens. Significantly, the most important signal for ETH is the break of $2900, which represented a significant resistance level. The pair may face some selling pressure if the price falls below the 9-day moving average at $2500 support. Meanwhile, the ETH/USD price has not changed much during the past few days, even after the massive flash crash down to $1728 suffered on May 23. ETH is currently fighting to stay above $2700 but might not face much resistance until it gets to the $2900 level.
However, the prevalent bearish bias could be tied to the stronger U.S. dollar, which tends to undermine the ETH/USD crypto pair. The U.S. dollar was supported by the upbeat U.S. data, which showed that the U.S. GDP grew by 6.4% quarter-on-quarter during the 1st-quarter of 2021, slightly below the 6.5% growth in forecasts, but the same growth as the previous quarter. Meanwhile, the reports also showed that 406,000 initial jobless claims were filed throughout the week. The number reached a 14-month low as layoffs declined. The positive data suggests that the U.S. economic recovery remains on the recovery track, which tends to underpin the American currency. Therefore, the upticks in the U.S. dollar were seen as one of the key factors that kept the pair under pressure.
On the other hand, the President of Bianco Research, Jim Bianco, said that he owns a cryptocurrency asset basket, including Ethereum, but he has prevented from buying Bitcoin. He also admitted that he bought Ethereum instead of Bitcoin. Bianco outlined the significant potential of the crypto market and noted that traders with an “out-of-control casino” mentality were the real problem that causes massive volatility in the digital assets market. In his opinion, the latest market crash was driven by too many leveraged positions that caused billions of dollars to liquidate in days.
Bianco said that his holdings of cryptocurrency have a significant portion of Ether due to his belief in the asset’s future performance. He added that people should have some exposure to the cryptocurrency market as it was more correlated to other risk assets, including stocks. Meanwhile, on Thursday, the Ethereum co-founder Vitalik Buterin said that the long-awaited shift to the “proof-of-stake” mechanism could solve environmental woes. Buterin said that POS would be a solution to the environmental issue of Bitcoin as it will need far fewer resources to maintain. It is an alternative to the “proof-of-work” model currently used by the Ethereum network to generate Ether.
In April, the Ethereum Foundation announced that it would move to a POS System, and the switch is expected to be completed by the end of 2021. With the environmental issue related to crypto mining receiving a renewed focus throughout the market thanks to Elon Musk and recent bans on crypto mining by Chiua and Iran, Ethereum could see a massive rally in its prices on switching to a potentially more energy efficient POS mechanism.
Bitcoin (BTC/USD) Weekly Review
The BTC/USD crypto pair failed to stop its previous bearish moves and drew some further offers around below $38,000 marks against the U.S. dollar. BTC/USD attempted another try to gain bullish momentum above the $40,000 resistance. But, it failed to continue higher and remained in a key range below the $38,000 level. The last swing high was made around $40,923 before the price started moving in a range. It corrected lower below the 23.6% Fib retracement level of the upward…