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Ethereum Price Forecast – Bullish Bias Dominates, Brace for a Buy Signal

Posted Thursday, May 6, 2021 by
Arslan Butt • 2 min read

ETH/USD closed at $3524.26 after placing a high of $3524.26 and a low of $3267.94. ETH/USD reversed its course and turned the previous day’s losses into gains. Ethereum reached a new all-time high level on Wednesday amid the renewed positive news about the cryptocurrency market. According to a report by CoinShares, Ethereum investment products have continued to see an increase in weekly inflows. During last week, institutional investment managers purchased about $30.3 million worth of Ethereum, bringing their total holding to a whopping $13.9 billion.

The report suggested that the focus of institutional investors has shifted toward smart-contract platforms; however, Bitcoin was still the king. This news added gains in Ethereum and pushed its prices to a new ATH level above $3500. BITCOIN also surged on Wednesday amid news that almost all of the U.S. banks will be offering crypto access to their clients in the coming months. Almost hundreds of U.S. banks have already enrolled in the program to allow their clients to buy, hold and sell bitcoins with their existing accounts. This news added strength to Bitcoin and pushed its prices above $57,000 for the second time in a week that also changed the market sentiment and gave strength to the already rising ETH/USD pair.

Furthermore, ETH/USD was also high on the board because of the weakness in the greenback. The U.S. Dollar Index fell to 91 levels on Wednesday amid the declining 10-year U.S. treasury yields. The declining U.S dollar added in the rising prices of ETH on Wednesday.

ETH/USD Daily Technical Levels

Support Resistance
3353.38 3609.70
3182.50 3695.14
3097.06 3866.02
Pivot Point: 3438.82The ETH/USD pair is trading sharply bullish at 3,446 level, having violated the ascending triangle pattern on the 4-hour chart. On the higher side, ETH/USD is likely to face the next resistance at 3,465 level, and violation of this can extend buying trend until the 3,537 level. The pair is expected to gain support at the 3,181 and 2,937 levels today. The technical indicators such as RSI and MACD support a solid bullish trend; therefore, we should look for buying positions in the pair. Let’s consider taking a buy trade today over 3238.82. Good luck!