Ethereum Price Forecast: ETH could be set for a comeback as US-Iran nears agreement

Source Fxstreet

Ethereum price today: $2,130

  • Ethereum holds above $2,100 as the US and Iran are reportedly nearing an agreement. 
  • BitMine's Thomas Lee says ETH could perform better if the war ends, given its strong inverse correlation with Oil prices.
  • ETH remains limited by overhead EMAs.

Ethereum (ETH) has continued to hold above $2,100 on Thursday, following reports that the US and Iran are nearing an agreement mediated by Pakistan. The deal allegedly includes a cease-fire on all fronts plus a joint monitoring mechanism in the Strait of Hormuz. Following the reports, US Oil prices slid below $100 toward $96 while the S&P 500 turned positive.

The resolution of the war could "decisively" impact Oil prices and, in turn, determine how Ethereum performs in the coming weeks, according to BitMine Immersion Chairman Thomas Lee. In a Thursday X post, Lee noted that the US Federal Open Market Committee (FOMC) highlighted the need for policy firming in the minutes of its last meeting if inflation stays above 2%.

"Higher Oil is pushing up inflation. Thus, higher Oil [equals] higher probability of Fed hikes," Lee stated. "And $ETH and crypto prices are linked to monetary liquidity. Thus, crypto will be inversely correlated to Oil."

Oil: Higher Oil = Higher probability of Fed Hikes Source: BitMine

In a separate X post on Monday, Lee argued that rising Oil prices are the biggest headwind for ETH, as the top altcoin's correlation to the commodity is at its highest. "As Oil rose in the past 6 weeks, ETH prices have fallen," Lee wrote.

However, he stated that the current inverse correlation with Oil is temporary tactical noise, claiming that ETH will perform better as the year unfolds due to stronger "structural drivers" in tokenization and agentic AI.

Market participants noted that Lee had flipped sentiment, citing previous comments in which he touted ETH as the best-performing asset since the start of the US-Iran war.

Thomas Lee's BitMine is the largest corporate Ethereum treasury, holding roughly 5.278 million ETH after another round of acquisition last week.

Ethereum Price Forecast: Potential ETH rally limited by EMAs' resistance

Ethereum has seen $47.9 million in liquidations over the past 24 hours, led by $24.2 million in long liquidations, per Coinglass data.

On the daily chart, ETH bulls have held the $2,108 support level, although prices continue to maintain a bearish near-term bias beneath the 20-, 50- and 100-day Exponential Moving Averages (EMAs) clustered from roughly $2,225 to $2,326.

This stacked configuration of overhead EMAs suggests rallies remain corrective within a broader downside phase, while the Relative Strength Index (RSI) near 38 and a subdued Stochastic reading around 21 hint at lingering, but not extreme, bearish momentum.

On the topside, initial resistance is seen at the horizontal barrier around $2,211, followed by the 20-day EMA near $2,225 and the 50-day EMA close to $2,244. A stronger cap emerges at the 100-day EMA near $2,326, ahead of a more distant obstacle at $2,388.

Chart Analysis ETH/USDT (Binance)
ETH/USDT daily chart

On the downside, immediate support is aligned near $2,108, with further cushions at $1,909 and $1,741, while deeper declines could expose the $1,524 and $1,405 levels.

(The technical analysis of this story was written with the help of an AI tool.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Nvidia Q1 Revenue Surges 85%, Data Center Business Accounts for 90%, Blowout Results Fail to Stop Stock VolatilityAs the absolute leader in the global AI industry chain, NVIDIA ( NVDA) delivered a quarterly earnings report that surpassed Wall Street's general expectations as anticipated.After the mar
Author  TradingKey
13 hours ago
As the absolute leader in the global AI industry chain, NVIDIA ( NVDA) delivered a quarterly earnings report that surpassed Wall Street's general expectations as anticipated.After the mar
placeholder
Is US-Iran Conflict About to End? Crude Oil Plummets, Gold Hits $4,500Tensions between the US and Iran showed clear signs of easing on Wednesday (May 20), leading to a plunge in the crude oil market while gold ( XAUUSD) continued its rally.WTI crude oil dai
Author  TradingKey
16 hours ago
Tensions between the US and Iran showed clear signs of easing on Wednesday (May 20), leading to a plunge in the crude oil market while gold ( XAUUSD) continued its rally.WTI crude oil dai
placeholder
Gold holds steady near $4,550 as market eyes Middle East developmentsGold price (XAU/USD) trades on a flat note around $4,540 during the early Asian session on Thursday. Traders continue to assess the developments surrounding stalled US-Iran peace negotiations and threats to the Strait of Hormuz.
Author  FXStreet
20 hours ago
Gold price (XAU/USD) trades on a flat note around $4,540 during the early Asian session on Thursday. Traders continue to assess the developments surrounding stalled US-Iran peace negotiations and threats to the Strait of Hormuz.
placeholder
Nvidia Earnings Approach: Can It Drive a Nasdaq Rebound? What Should Investors Watch Most?On May 20, ET, NVIDIA ( NVDA )'s first-quarter fiscal 2026 earnings report, to be released after the market close, has become the market focus. The options market has already reacted; bas
Author  TradingKey
Yesterday 10: 33
On May 20, ET, NVIDIA ( NVDA )'s first-quarter fiscal 2026 earnings report, to be released after the market close, has become the market focus. The options market has already reacted; bas
placeholder
Gold Prices Fall Below Key $4,500 Mark, US Treasury Yields Rise for Seventh Day, Gold May Fall to $4,100On Tuesday (May 19), gold ( XAUUSD) closed at $4,481.89. The price confirmed a break below $4,500, further opening up the downside. On Wednesday, gold extended its downward trend from the
Author  TradingKey
Yesterday 03: 34
On Tuesday (May 19), gold ( XAUUSD) closed at $4,481.89. The price confirmed a break below $4,500, further opening up the downside. On Wednesday, gold extended its downward trend from the
Related Instrument
goTop
quote