Ethereum goes parabolic ahead of CME futures launch
Ethereum exploded to a fresh all-time high this week as traders and investors piled into the second-largest cryptocurrency ahead of the upcoming launch of Ethereum futures on the CME exchange. The ETHUSD pair rallied towards the $1,700 level this week marking an increase of over twenty percent from the lows of the week. On-chain data showed a significant amount of whale activity as new institutional money propelled Ethereum higher. Analysts are speculating that the price of Ethereum could continue to rise over the short and medium-term as the cryptocurrency is starting to look undervalued in comparison with Bitcoin.
- The ETHUSD pair is only bearish while trading below the $1,300 level, key support is found at the $960.00 and $850.00 levels.
- If the ETHUSD pair trades above the $1,300.00 level, buyers may test towards the $1,700.00 and $2,000.00 resistance levels.
Wall Street calms
Volatility in financial markets was noticeably lower this week, as fears over the recent battle between Main Street and Wall Street started to subside. The price of GameStop slumped lower, leaving investors more at ease towards the prospect of hedge funds suffering huge losses and potentially asking for a bailout. Wall Street also cheered the news that the House of Representatives approved the $1.9 trillion stimulus bill from the Biden administration. Traders and investors hoped that the stimulus bill would trickle-down to the real economy and help with consumption, which would boost company earnings in the United States.
- The S&P 500 is only bullish while trading above the 3,700 level, key resistance is found at the 3,900 and 4,000 levels.
- The S&P 500 is only bearish while trading below the 3,700 level, key support is located at the 3,500 and 3,360 levels.
Silver had an explosive week in the commodity market this week after the shiny-metal exploded towards the $30.00 level and then reversed sharply towards the $26.00 level. Silver started the trading week in explosive fashion and opened with a massive price gap on the Monday open due to record amount of speculative interest. The price of silver soon reached $30.00 and then quickly collapsed towards the $26.00 level as the CME exchange raised margin requirements. Some financial market commentators suggested that the price of silver was being driven higher by the Reddit crowd who recently caused GameStop and Dogecoin to explode higher.
- The XAGUSD pair is only bearish while trading below the $27.00 level, key support is found at the $26.00 and $25.00 }levels.
- The XAUUSD pair is only bullish while trading above the $27.00 level, buyers may test towards the $28.50 and $30.00 resistance levels.
Central Bank action
Central bank action kept traders busy this week as both the Bank of England and the Reserve Bank of Australia delivered policy decisions. The Reserve Bank of Australia shocked financial markets as they increased QE purchased to shore-up the Australian economy. The AUDUSD pair fell on the news and remained under the pressure as the US dollar gained broadly this week. The Bank of England kept interest rate unchanged as widely expected and talked down the prospect of implementing negative interest rates any time soon, causing sterling and the FTSE 100 to climb.
- The AUDUSD is only bearish while trading below the 0.7660 level, key support is found at the 0.7550 and 0.7440 levels.
- The AUDUSD is only bullish while trading above the 0.7660 level, buyers may test towards the 0.7710 and 0.7780 resistance levels.