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With bearish and bullish catalysts lined up all around ETH, it remains to be seen what direction the market will go and what choices traders will make.
There was a surge in the price of Ethereum (ETH) on Sunday. This was the market’s reaction to Elon Musk’s tweet about reconsidering Bitcoin as an acceptable means of payment for Tesla. Following closely after BTC, Ethereum is the second-largest cryptocurrency by market capitalization and trading volume. As a result, spikes in the price of BTC are known to cause an upsurge in the price of ETH as well.
Cointelegraph had earlier reported that Magda Wierzycka, chairperson of Sygnia, had stated that the US Securities and Exchange Commission (SEC) should consider investigating Musk’s tweets on Bitcoin. This has left investors scampering in the shadows as they look to find out which way the axe would swing.
Bullish and Bearish Catalysts that Can Affect Ethereum (ETH) Price
Prior to this time, Elon Musk has withdrawn the decision of Tesla to use Bitcoin as a way to make payment. When this was announced in May, the price of Ethereum. Thus, interest is at an all-time high as traders and investors look to see what the decision on the Federal Interest Rate will be and whether the Central bank would maintain its position about transitionary inflation pressures.
ETH price rallied on Sunday, rising to 2,551.89 before it paused. Unable to break through this point, 2552 became the critical resistance point. As it stands, the price may push beyond Sunday’s high if more buyers enter the trade. However, given the decline in monthly active addresses, it seems likely that market investors are not interested in ETH at its current levels and may already be taking their profits or reallocating funds.
Alternatively, any rise in selling pressure that results in a 4-hour candlestick close below 50% Fibonacci retracement level at $2,319 will invalidate the bullish outlook.
In such a case, the smart contract token will dip to retest the 62% or the 70.5% Fibonacci retracement levels at $2,177 and $2,077, respectively. Such a move will cancel out the bullish outlook and lead to a downward swing. This would allow more buyers, looking to take advantage of the discount into the market and propel its market value higher.
Another market catalyst to consider is the expiration of Ether’s largest options, worth $1.5 billion by June 25. The last time there was an options expiry in March, ETH price plunged downwards by 17% in 5 days reaching $1550 before rallying again by 56% and reaching $2,500 in about twenty days.
With bearish and bullish catalysts lined up all around ETH, it remains to be seen what direction the market will go and what choices traders will make. The current market price, according to CoinMarketCap is $2477.29.