Cryptocurrencies are experiencing a slowdown as traders refocus their attention on earnings and economic fundamentals. Last week, Ethereum’s Shapella Upgrade was successfully implemented, causing a surge past the 2000 level. While some feared the upgrade would lead to a selloff, investors chose to emphasize the long-term advantages of the update. As a result, Ethereum remains well-supported above the 2000 threshold despite the pullback.
In the short term, Ethereum’s prospects appear bullish, provided the 1824.70 support level remains intact. An ongoing rally could propel Ethereum towards a long-term fibonacci retracement level of 38.2% retracement of 4863.75 to 878.50 at 2400.86. However, Rejection by this level will keep price actions from 878.50 as a corrective move only, and keep medium term outlook neutral at best.
Meanwhile, Bitcoin has slipped back under the 30k mark after a brief spike to 31011 last week. The near-term outlook for Bitcoin will stay bullish as long as the 27808 support level holds. The climb from 15452 has the potential to reach a 38.2% retracement of 68986 to 15452 at 35901. Similar to Ethereum, if Bitcoin is rejected by 35901, price action from 15452 would be viewed as corrective, leaving the medium-term outlook neutral at best.
