Digital Currency Revolution Series: Quick Glance At Ethereum’s Upside Traction

ETHUSD’s consolidation phase has been constructive, it has seen rallies of 12.27% in May’20. The pair is currently trading just under 4.8% from the channel resistance at it is trading at $236.70 levels. ETH seems to have catalysed the recent bullishness in the crypto-space, as it continued last week’s uptrend along with Bitcoin and most other major altcoins.

Technically, the minor trend tests support at 7-DMAs, but failures swings at rising channel resistance on the overbought pressures, both leading & lagging oscillators are bullish bias (refer daily chart).

Bulls take-off rallies above EMAs upon strong support of 198.40 levels, stiff resistance observed at trend line (refer weekly chart). More rallies likely only on breakout, both leading oscillators (RSI & stochastic curves) signal intensified buying momentum.

Most importantly, foreseeing the ETH upside traction is majorly driven by the Ethereum 2.0 blockchain upgrade, scheduled to begin its launch later this year, tentatively during July or August. Owing to which, the fundamental advancements in ETH 2.0 most likely to bring in considerable demand for the cryptocurrency.While the staking intensely drives the ether’s demand in the long-run.

Confluence of various fundamental driving forces and derivative market’s data also indicate the further upside prospects of ether.

Open interest of ETH surged to a record high of $136 million recently, marking a 460% increase from $24 million, as per Skew, the renowned crypto derivatives research firm.

Hence, we wish to activate the longs in ETHUSD futures contracts of mid-month deliveries with an objective of participating in prevailing uptrend as we could foresee the upside target of $290 in the days to come.