Current trend

The ETH/USD pair is actively adding value as part of a long-term uptrend: today, quotes have risen again above the psychological level of 4000.00, reaching December 2021 highs around 4090.00. The strengthening of the token's position is facilitated by existing factors — increased investor attention to digital assets against the background of the rapid growth of the first cryptocurrency and market capitalization, which reached 2.71 trillion dollars, as well as the expectation of activation of the Dencun hard fork and approval of the launch of an ETH-based ETF by the U.S. Securities and Exchange Commission (SEC).

The update will launch the operation of the EIP-4844 data blocks, known as "proto-danksharding", which are aimed at reducing the cost of transaction fees on second-tier Ethereum networks, as well as increasing overall scalability. Investors and developers have high hopes for Dencun, as the Ethereum blockchain has recently become increasingly expensive and inconvenient for ordinary users. According to IntoTheBlock analysts, last week the total amount of commissions on the network amounted to 193.0 million dollars, which is approximately equal to 28.0 dollars per transaction, and the Dencun fork is designed to improve this situation.

In addition, investors' attention to ETH is due to the possibility of approval of the launch of exchange-traded ETF funds based on the second world cryptocurrency by American officials in May, although experts have been increasingly doubting this lately. The fact is that the deadline for making a decision is getting closer, and there is practically no information from the SEC on the approval of new instruments, which is a negative signal. In addition, Bloomberg analysts point out that the launch may create an undesirable precedent for the authorities, since it will mean that the cryptocurrency is not a security. Based on this, the option of postponing the final verdict from May to autumn is not excluded.

Support and resistance

The price is testing the 4062.50 mark (Murrey level [5/8]), the breakout of which will lead to continued growth towards the targets of 4375.00 (Murrey level [6/8]) and 4687.50 (Murrey level [7/8]).

The uptrend in the market remains, which is confirmed by the upward reversal of Bollinger Bands and MACD increase in the positive zone, while the downwards reversal of Stochastic in the overbought zone allows the development of a downward correction to 3750.00 (Murrey level [4/8]), 3437.50 (Murrey level [3/8], the central line of Bollinger Bands) after the activation of the Dencun fork, but it is unlikely to lead to a change in the current trend, so further growth of quotes in the medium term is more likely.

Resistance levels: 4062.50, 4375.00, 4687.50.

Support levels: 3750.00, 3437.50.

Trading tips

Long positions can be opened above the 4062.50 mark or after the price reversal around 3437.50 with targets of 4375.00, 4687.50 and stop-losses of 3840.00 and 3125.00, respectively.