Forex Trading Tools and Services

Crypto Ethereum

Ethereum Price Forecast: Will ETH Plunge to $1,200 Amid Trade War Tensions?

  • BY
  • February 8, 2025
  • 0 Comments

Ethereum’s price is facing downward pressure as global trade war tensions rise following former U.S. President Donald Trump’s announcement of reciprocal tariffs on multiple countries. The cryptocurrency declined by 4%, mirroring losses in the stock market, with the S&P 500 also dropping significantly. Analysts are warning that if Ethereum breaks below the $2,150 support level and a descending channel’s lower boundary, it could drop to $1,200. However, bearish momentum, as indicated by RSI and Stochastic Oscillator readings, is not translating into net inflows for Ethereum ETFs, which have been better than Bitcoin ETFs, at least. The coming week will be critical as market sentiment is expected to shift with Trump’s trade policies, which are going to impact both traditional and digital assets. KEY LOOKOUTS • A breakdown below this key support level may lead to a sharp fall toward the $1,200 price zone. • The market is waiting for Trump’s next move on reciprocal tariffs, which may further increase selling pressure on ETH and other risk-sensitive assets. • Ethereum’s price is increasingly mirroring the S&P 500, meaning further stock market losses could accelerate ETH’s decline in the coming days. • Despite the bearish trends, Ethereum ETFs have performed better than Bitcoin ETFs, which may indicate investor confidence that can stabilize prices. Ethereum’s price trend is still uncertain as it is hovering near key support levels amidst rising global trade tensions. Former U.S. President Donald Trump’s announcement of reciprocal tariffs has triggered a market-wide sell-off, with Ethereum falling 4% and the S&P 500 plummeting. Failure to hold at the crucial support level of $2,150 could send ETH to a subsidence towards $1,200. But ETF inflows have been increasing lately; this does gain some institutional confidence and signals stabilization in prices. With these correlations moving up between Ethereum and traditional markets, economic developents and decisions of Trump will be the next points in the deciding direction for Ethereum. Ethereum is under downward pressure as Trump’s tariff plans rattle markets, and ETH has fallen 4% with the stocks. If it breaks the support level of $2,150, then a fall to $1,200 is likely. Meanwhile, strong ETF inflows indicate institutional confidence, which may stabilize the price. • ETH fell sharply after Trump announced reciprocal tariffs, similar to the stock market losses. • If ETH breaks below this critical level, it may lead to a further fall to $1,200. • Price action of Ethereum tracks the S&P 500 quite closely as its linkages to traditional markets intensify • Market mood remains bearish on account of heightened trade tension and potential jolts in the economy. • Despite sharp declines, net inflows of more than $420 million are witnessed in the case of Ethereum ETFs and surpassed Bitcoin. • RSI and Stochastic Oscillator signals a continuation of bearish sentiment. The latter further increases the prospects of going south. • The ETH can bounce back and make its way toward higher values if it sustains above the support and breaks through the resistance line at $2,817. Ethereum’s price continues to come under strong bearish pressure due to former U.S. President Donald Trump’s recent announcement of imposing reciprocal tariffs on several countries. This sent ripples in global markets. It has shed 4%, following the traditional market losses. For instance, S&P 500 plummeted highly. This would mean that if Ethereum fails to hold the strong support level at $2,150, then the decline may easily reach the next target of $1,200. Technical indicators like RSI and Stochastic Oscillator confirm bearish momentum; hence, ETH may fail to regain upward momentum unless market sentiment somehow improves. Ethereum Daily Price Chart TradingView Prepared by ELLYANA Despite the negative price action, Ethereum ETFs have outperformed Bitcoin ETFs, recording over $420 million in net inflows compared to Bitcoin’s $32.5 million. Institutional investors still see value in Ethereum despite short-term volatility. However, ETH remains highly correlated with the stock market, meaning further declines in equities could accelerate its downward trend. Key levels on the charts which traders must keep an eye open for are at support and resistance, with the bounce from this $2,150 zone and a break over $2,817 making for the big, next, substantial price movements by Ethereum. TECHNICAL ANALYSIS Ethereum’s technical is bearish since the current fall is at testing the lower edge of the downward channel. Thus, failure in holding that very important support in the vicinity of $2,150 can allow a steeper fall into $1,200. The RSI and Stochastic Oscillator are well below their respective neutral levels, which means a strong bearish momentum is intact. Furthermore, in the past 24 hours, Ethereum had liquidations in futures worth $65.43 million, an indicator of high market uncertainty. If ETH is able to rebound off the support and break the $2,817 resistance level, it can move towards the reversal, likely hitting $4,500 long-term. FORECAST Ethereum has a pretty good chance for a strong pullback if this holds the significant support levels. If ETH was able to jump off the supporting zone at around $2,150 and pass the resistance marked at $2,817 then it could prove to be quite a reversal move. A bounce above the line of the downward channel could see a further upside towards the psychological level of $4,500. Institutional interest remains strong, as evidenced by the recent $420 million net inflows into Ethereum ETFs, suggesting that long-term investors see value in ETH despite short-term volatility. Additionally, if broader market sentiment improves and risk assets recover, Ethereum could benefit from a renewed bullish phase. Ethereum faces significant risks if it fails to hold the crucial $2,150 support level. A break below this level might extend the sell-off, pushing ETH down toward $1,200. The increasing correlation of Ethereum with the S&P 500 indicates that further declines in traditional markets will drag their prices lower and keep crypto prices lower as well. Bearish technical signs for the RSI and Stochastic Oscillator mainly indicate selling pressure over here. Moreover, if Trump’s trade policies continue to intensify global economic tensions, risk assets such as Ethereum may

Read More
Currencies EUR/USD

EUR/USD stabilizes at 1.0400 ahead of US NFP and Fed Interest Rate Expectation

  • BY
  • February 7, 2025
  • 0 Comments

EUR/USD continues within the trading ranges at 1.0400, awaiting release of US NFP, while this is perceived to determine a mood for subsequent Fed interest rates decisions. During the cautious day of the United States Dollar trade, June cut of the federal rate remains pending. The Eurozone is feeling the pinch of economic uncertainty due to concerns over potential US tariffs on European goods. The European Central Bank stays dovish, maintaining an accommodative tone. The technical outlook remains bearish with strong support at 1.0177 and resistance at 1.0500 as the market slices through economic data and global trade risks. KEY LOOKOUTS • The NFP report is due out soon and will be driving Fed rate expectations, with good job numbers delaying rate cuts and weak data lifting dovish bets. • The market is still expecting a June rate cut, but any change in the Fed’s tone depending on the data, especially inflation and labor market, could see the US Dollar swing. • The Euro is under pressure due to economic growth concerns, dovish ECB outlook, and potential trade tensions with the US, which could affect the currency’s stability. • EUR/USD faces resistance at 1.0500, while support lies at 1.0177, with the 50-day EMA and RSI indicating a sideways to bearish trend in the near term. EUR/USD is being capped within tight ranges around 1.0400 as investors prepare for the US Nonfarm Payrolls report, which will influence the monetary policy outlook by the Federal Reserve (Fed). Strong labor market data may fortify the views that the Fed would like to sustain higher interest rates for more extended periods of time, and poor data will increase the scope of speculations for a rate cut in June. However, the Euro came under pressure from heightened economic uncertainties in the Eurozone, which include the dovish European Central Bank (ECB) and threats of potential US trade tariffs. Meanwhile, technical indicators project a cautious outlook. The main resistance remains at 1.0500, while support is at 1.0177, keeping dealers on their toes. EUR/USD is trading cautiously around 1.0400. The economy may take shape with regards to Fed rate outlook over US NFP and the more dovish stance by ECB coupled with potential US trade tariffs, weighing on Euro. Keep an eye on resistance at 1.0500 and support at 1.0177. • A healthy jobs report should delay Fed rate cuts, and softer data will increase the bets for dovish rates. • Markets are expecting a June rate cut, but Fed policy change can alter the strength of the USD. • ECB dovish attitude coupled with sluggish growth affects the outlook for the Euro. • Tensions in trade can potentially damage the economy of Eurozone leading to volatile market conditions. • The chart at 1.0500 acts as major resistance for EUR/USD while major support is at 1.0177, and the trend is bearish. • DXY-USD Index still holds much significance and changes in that affect the moves in EUR/USD. • Average Hourly Earnings data will help understand inflationary trends, impacting Fed policy expectations. EUR/USD remains locked in a trading range around 1.0400 as market participants wait for the highly influential US Nonfarm Payrolls (NFP) report, which may significantly alter the Federal Reserve’s (Fed) interest rate outlook. A strong labor market reading could solidify expectations that the Fed will maintain higher rates for longer and support the US Dollar. Weaker employment data will fuel speculation of an earlier rate cut, which puts pressure on the Greenback and could lift EUR/USD. The European Central Bank is dovish; its policymakers are signaling that there is room for further rate cuts as economic uncertainty looms over the Eurozone. EUR/USD Daily Price Chart TradingView Prepared by ELLYANA EUR/USD risks from possible trade tensions between the US and the Eurozone. US President Donald Trump hinted that he would levy tariffs on goods imported from Europe, a development that will continue to dent the region’s economy and weaken the Euro. Technically, there is still caution as it hovers above resistance at 1.0500 and below support at 1.0177. It stays below the 50-day EMA while its RSI prints a neutral-to-bearish trend. Traders will watch the NFP data, wage growth figures, and further US-Eurozone trade relations developments for directional guidance. TECHNICAL ANALYSIS EUR/USD is under pressure, trading at 1.0400, with key resistance at 1.0500 and strong support at 1.0177. The pair is unable to break above the 50-day Exponential Moving Average (EMA) at 1.0436, indicating a bearish bias. At 14-day Relative Strength Index (RSI) between 40.00 and 60.00 the pair is neutral to slightly bearish momentum. In case the pair fails to break up at 1.0400, it’s likely to hit further down at 1.0177. Conversely, a breakout above 1.0500 would provide the trigger for a short-term bullish reversal. Traders will be tracking the decisive break above or below these levels to confirm the direction of the next trend. FORECAST However, a disappointing US Nonfarm Payrolls report ahead could send the EUR/USD even higher as the market would be further reoriented into the Federal Reserve cut on June. A weaker labor market puts pressure on the US Dollar, allowing the Euro to strengthen. If the pair can clear the resistance level of 1.0500, it would then open doors for further gains to 1.0600 and then 1.0750. In addition, any hawkish move by the ECB or economic rebound in the Eurozone can strengthen investors’ confidence in the Euro. A softer US stance on threatened tariffs imposed on European merchandise can also be seen to boost the positive EUR/USD sentiment. The pair remains sensitive to downside risks, with this week’s US labor market set to be a potent risk for EUR/USD if the data proves stronger than expected. A quality NFP report should lower the probability that the Fed will cut rates, favoring the US Dollar and driving EUR/USD even lower. Technically, if this pair does not stay atop of 1.0400, key support is located at 1.0177, and then comes a psychological level of 1.0100. Additionally, increasing economic uncertainty within the

Read More
Currencies USD/JPY

Japanese Yen Holds Steady Against USD on BoJ Rate Hike Bets and Fed Policy Expectation

  • BY
  • January 29, 2025
  • 0 Comments

The Japanese Yen (JPY) maintains the intraday gains against the US Dollar (USD) as investors await the policy decision of the Federal Reserve (Fed). Support for the JPY comes from expectations of further interest rate hikes by the Bank of Japan (BoJ) and a narrowing US-Japan yield differential driven by declining US Treasury bond yields. Meanwhile, worries over US President Donald Trump’s trade policies and a positive risk sentiment may cap JPY’s upside. Market participants expect a dovish Fed stance, with the possibility of rate cuts later in the year. The USD/JPY pair faces key resistance near 156.60-156.70, while the 155.00 psychological level serves as immediate downside support. The event from the Fed will probably drive USDJPY’s direction in the short run. KEY LOOKOUTS • USD/JPY will remain capped due to further monetary policy tightening at hand at the Bank of Japan. • Investors await the result of the Federal Reserve’s two-day meeting that should highly determine price action for the USD and, therefore, the moves for USD/JPY. • Softening US Treasury yields continue to compress the yield gap, making the lower-yielding Yen more favorable and capping on USD gains. • Fresh tariff threats by Donald Trump are likely to lift inflation concerns that impact Fed rate expectations, creating volatility in currency markets. Japanese Yen remains firm against the US Dollar as trading attention shifts to key economic events and policy decisions. Market players are expecting the BoJ to hike the rates further. The wage negotiation is strong and monetary policy adjustment is cautious. The Federal Reserve’s two-day meeting is highly awaited since the expectations of a possible rate cut later this year are influencing USD dynamics. Besides, the yield differential between the US and Japan has narrowed further due to the decrease in US Treasury yields, strengthening the Yen. However, concerns over US President Donald Trump’s proposed tariffs and their inflationary impact could inject volatility into the USD/JPY pair, making the Fed’s stance a crucial factor in the currency’s near-term direction. The Japanese Yen holds its ground against the US Dollar amid BoJ rate hike expectations and a narrowing US-Japan yield differential. Traders await the Fed’s policy decision, which could shape USD/JPY’s direction. Meanwhile, Trump’s trade policies add uncertainty, influencing market sentiment and currency volatility. • Traders anticipate further interest rate hikes from the Bank of Japan, supporting the Yen. • The outcome of the Federal Reserve’s meeting will be very crucial for the movement of USD/JPY. • The decline in US Treasury yields has narrowed the gap, and the lower-yielding Yen is in favor. • Market participants believe that the Fed will cut borrowing costs twice before the end of the year. • Fresh tariff threats on key imports could impact inflation and USD strength. • Resistance for USD/JPY is seen near 156.60-156.70, and further upside is capped at 157.45-158.00. • The psychological level at 155.00 is acting as support and then 154.50 and 153.70. The Japanese Yen is gaining ground against the US Dollar as traders are positioning ahead of the Federal Reserve’s policy decision. Expectations of further interest rate hikes by the Bank of Japan (BoJ), due to strong wage growth and cautious monetary adjustments, have strengthened the Yen. The decline in US Treasury bond yields has also brought the US-Japan yield differential closer, making the lower-yielding JPY more appealing to investors. However, risk-on sentiment in global markets and traders’ aversion to making aggressive bets before the FOMC meeting have capped further gains for the Yen. USD/JPY Daily Chart TradingView Prepared by ELLYANA Meanwhile, the US Dollar remains pressured due to growing speculation that the Federal Reserve is going to be dovish and cut rates further later in the year. US President Donald Trump’s tariff threats on computer chips, pharmaceuticals, and metals in recent weeks also add market uncertainty as that threatens to potentially inject inflation into the economy. The USD/JPY pair is currently ranging near the 155.00 psychological level, with some resistance near 156.60-156.70 and further upside potential capped at 157.45-158.00. The key supports at 154.50 and 153.70 will come into play if bearish momentum increases. Traders are now awaiting the Fed’s decision, which will significantly decide the further move for the USD/JPY pair. TECHNICAL ANALYSIS Technically, the USD/JPY pair has broken below a multi-month ascending channel, favoring a bearish outlook. The 155.00 psychological mark is immediate support, followed by key levels at 154.50 and 153.70. A sustained break below these zones could accelerate the downside move toward the 153.30 and 153.00 levels. On the upside, resistance is seen at 156.60-156.70, with further selling pressure expected near 157.45. A breakout above 157.00 may lead to a short-covering rally to take the pair as high as 158.00 and the multi-month top of 158.85-158.90. In addition, the daily chart is showing slightly negative oscillators; thus, until the Fed’s decision alters the trend in the markets, the trend might continue its downward trajectory. FORECAST If the Fed decides to raise its interest rates or indicates an extended period for cutting rates, then the USD/JPY can once again experience an upward swing. A break above the resistance zone of 156.60-156.70 may trigger a short-covering affair, with the buyers targeting the 157.45 level. Further bullish momentum is seen taking this pair toward 158.00, and sustained may retest the multi-month high of 158.85-158.90. However, for an extended rally, strong economic data from the US and rising Treasury yields would be necessary to attract fresh buying interest in the USD. On the flip side, if the Federal Reserve indicates a dovish policy shift or focuses on possible rate cuts, the US Dollar may weaken, and this would push USD/JPY down. A convincing break below the 155.00 psychological mark may reveal the 154.50-154.55 support area. More downside force may accelerate the fall to 153.70, with a deeper fall focusing on 153.30 and 153.00. Stronger expectations of BoJ rate hikes, with narrowing US-Japan yield differentials, should keep the Yen supported, supporting a bearish view for the USD/JPY pair.

Read More