- Brazilian Securities and Exchange Commission approved the first ETF.
- Jerome Powell’s dovish statement underpinned the ETH/USD at $1,869.
- Descending channel extends an immediate resistance at $2,045.
The ETH/USD was closed at $1994.73 after placing a high of $2017.67 and a low of $1865.58. After declining straight for two days, ETH/USD reversed its course and found support at the $1,865 level.
Ethereum rises as Brazilian SEC approved First ETF
Ethereum forecast is a bit bearish today; however, ETH/USD remained green throughout the day amid the latest positive development from Brazil. The Brazilian Securities and Exchange Commission approved the first exchange-traded fund as it traced the performance of the ETH in Latin America.
The manager at QR Asset Management announced that the product would trade on the Sao Paulo stock exchange B3 under the ticker QETH11. This new product will enable institutional investors to gain exposure to the second-largest crypto by market capitalization in a safe and regulated manner.
QR also noted that B3 would be the first stock exchange in Latin America to list a 100% Ethereum ETF. The product will also utilize the secure institutional custody of the U.S. cryptocurrency exchange Gemini. QETH11 was the second approved crypto exchange-traded fund in Brazil after the nation’s securities regulator gave the green light to a Bitcoin ETF in March this year.
The news added strength in the ETH/USD as Brazilian SEC added ETH ETF based on the exceptional performance of Ethereum in Latin America. Furthermore, the cryptocurrency ETH was also high on Wednesday amid the recent weakness in the U.S. dollar.
If you are interested in trading ETH/USD with forex robots, check out our guide.
Jerome Powell’s Dovish Statement Underpins Ethereum
The greenback was weak across the board as the DXY fell to 92.34 level after the Chairman of the Federal Reserve, Jerome Powell, gave dovish comments about the U.S. economic outlook. He said that the economy was far from reaching goals set by the Fed to start easing stimulus measures.
Jerome Powell added that the U.S. jobs market was also far from reaching goals set by the central bank. Powell added that the higher inflation figures resulted from increased demand from the reopening of the economy and said that this spike in inflation is likely to continue for the coming months as it was temporary. These dovish comments from Fed President added weight on USD and pushed ETH/USD cryptocurrency higher.
Ethereum (ETH/USD) Forecast – Technical Levels: Key Resistance at 2053.08
Support Resistance
1900.99 2053.08
1807.24 2111.42
1748.90 2205.17
Pivot Point: 1959.33
Ethereum (ETH/USD) Forecast – Daily Technical Analysis: Bullish Trend ahead?
- Ethereum forecast is a bit bearish today, as the technical side of the market is exhibiting selling bias. The ETH/USD pair is trading at 1,958 level, facing a solid resistance at 2,043 level.
- On the 4 hour chart, the ETH/USD has formed a downward channel that’s supporting the selling trend. The descending channel is providing an immediate resistance at 2,043 level, however, the breakout of this level can lead the ETH/USD price towards the next resistance area of 2,179 level.
- The ETH/USD pair may find immediate support at the 1,870 level that’s being extended by a double bottom pattern. Whereas, the breakout of 1,869 level can its price towards next support areas of 1,753 level.
- Speaking about the lagging and leading technical tools, the 50 periods EMA(Exponential Moving Average – Red Line) and the MACD have a slight divergence. The EMA is supporting a selling bias, while the MACD is still holding in a bullish zone.
- Ethereum forecast is bearish on Thursday, thus, forex trading participants may have an excellent sell opportunity below 2,043 level.
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