Ethereum Price Analysis: Area of Interest on ETH/USD Draws Buyers
Ethereum is testing a long-term area of interest that seems to be drawing more buyers back in. If bulls keep it up, a rally up to the shorter-term descending trend line could take place.
The 100 SMA is above the longer-term 200 SMA on this time frame to signal that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse.
However, the gap between the two is narrowing to signal weakening bullish momentum. In addition, the 200 SMA could serve as nearby resistance around $600.
Stochastic has been in the oversold region for quite some time, which suggests that selling pressure is exhausted. Pulling up could further encourage buying activity and even lead to a break past the falling trend line.
Sentiment in the cryptocurrency industry has been improving somewhat, although there are no key catalysts to speak of. Risk appetite is returning to the financial markets, possibly on easing fears of a trade war, but China and the US are still pretty tense when it comes to tariffs.
Bitmain, which is a bitcoin mining firm, announced its ethereum mining tech this week. The unit called Antiminer E3 is expected to ship in July at a price of $800 per unit and is limited to one unit per user with restrictions on shipping to China and Taiwan.
As for the dollar, the main event for the week is the NFP release and strong data could reinforce demand and lead to a break below the ETH/USD area of interest. Weak results, on the other hand, could weigh on tightening hopes and allow this pair to sustain the climb.