(DAILY NOTION): Things Looks Bright for ETH/USD, Next Mover: Upcoming U.S. Data, Global Economic Recovery

Source: Yahoo Finance

ETH/USD experienced a consolidation and dipped to $688, before bouncing off the five-day Simple Moving Average (SMA) and hiked upwards to $700.

Anil Panchal, an analyst from FX Street cited that there is still room for more upward movement, supported by a sustained trading beyond the five-day Exponential Moving Average (EMA), as well as an upward sloping trend line.

He also opined that a resistance level can be found at $747, and should this be achieved, the next level would be $830.

As reported by Investing.com, ETH/USD typically follows in the footsteps of BTC/USD. The potential upward movement is further supported by the strengthening of DeFi, or decentralized finance.

As many aspects of the world experienced a disruption in how they worked this year, the finance sector has not escaped this disruption. With a growing spotlight on cryptocurrencies and a decentralised financial system, ETH/USD could very well ride this wave of change in a spectacular manner.

A brand-new year starts in a matter of days. Traders will most certainly be watching the global economic recovery that is on a fragile balance these days as the race between new Covid-19 cases and the progress of the vaccination goes on.

The U.S. economy would particularly be in strong limelight, as President Trump is proving that He will not leave his prestigious office gracefully. Incoming President Biden will inherit the top position at an unprecedented time in history and with many uncertainties surrounding the U.S. economy in his hands.

That being said, the upcoming U.S. Data releases for the remaining two working days of this year such as the initial jobless claims, trade balance, and new home sales would be closely watched as a potential sign of what may come in the coming days.

Would the scales tip even further in favour for cryptocurrencies, should the existing economy fail to assure traders? Only time will tell.

ETH/USD (as of Dec 30, 2020, 10.20 a.m., GMT +8) - $735.04