(DAILY NOTION): Bulls Defend ETH/USD Well, But Can They Sustain? Next Mover: Earnings Report

Source: Yahoo Finance

On Jan 10, ETH/USD surged upwards to hit $1,348 before being hit by a market sell-off that caused it to drop to $915. The ETH/USD market cap is presently at $142.37 billion (13.34% of the total cryptocurrency market cap). This is $4.63 billion shy of its all-time high of $ 147 billion.

The bulls fought back hard and managed to defend a critical support level of $915, which is the 26-Exponential Moving Average (EMA). At the time of writing, ETH/USD is at $1,233.38. The Relative Strength Index (RSI) stands at 50, having moved up from 12 earlier today.

Analyst Lorenzo Stroe from FX Street believes that there is very low resistance on the journey to $1,440. Furthermore, Ethereum whales are still aggressively accumulating Ethereum, which then increases the likelihood of their price to increase soon.

However, there is a risk-on sentiment in the market, buoyed by President-elect Joe Biden’s stimulus package announcement, stated to be at $1.9 trillion. This includes $2,000 stimulus payments to Americans, a $1,400 increase from the present $600. Biden also aims to ramp up vaccines and virus testing, as the rate of vaccination in the United States is deemed to be underwhelming.

The earnings reports from big banks such as JP Morgan and Citi are due later today. A healthy report would further increase the sense of optimism in the market, as in these uncertain times, these reports are also seen as an indicator of the economy.

A risk-on sentiment could lure capital away from cryptocurrencies which might cap ETH/USD’s gains in the near future.

ETH/USD (as of Jan 15, 2021, 10.25 a.m., GMT +8) - $1,233.38