Ethereum (ETH), under the scrutiny of buyers, is currently near critical resistance. However, this bullish pressure appears to be easing.
A quiet day before the CPI release?
Since the beginning of the year, the second largest cryptocurrency by capitalization has managed to gain 12% in value. She thus dethrones the queen, bitcoins (BTC) in terms of stock market performance. In fact, the latter increased by only 6%. Furthermore, BTC remains far from the December high, while Ether (ETH) is on the verge of surpassing it. However, yesterday the bull run calmed down a bit. Indeed, it was quiet yesterday despite a speech by Fed Chairman Jerome Powell. Is the market preparing to react to the biggest news of the week?
In fact, important macroeconomic data will be published tomorrow at 14:30. This is the CPI or Consumer Price Index, which measures the inflation rate in the United States. Therefore, much more volatility should be expected on Ether (ETH) and in the cryptocurrency market in general. If the inflation rate rises, it should be dollar positive. In this case, it will drive down the price of cryptocurrencies, led by bitcoin (BTC). On the other hand, if the CPI is weaker than expected, one might consider an increase in cryptocurrencies.
An ascending triangle on ether (ETH)?
With yesterday’s moves, an “ascending triangle” pattern has formed on the short-term chart. A resistor forms the top. This figure shows the market indecision and lessening of buyer pressure on Ethereum (ETH). In fact, it looks like the price is stagnating just below $1350. This is the last short-term hurdle for buyers to overcome. If the price breaks above this level, we can consider a rally for ether (ETH) to $1435. However, given bitcoin’s weak bullish momentum, it will be difficult for ETH to break above this level.
Also, this ascending triangle could be a reversal pattern. Therefore, Ether (ETH) can be expected to decline to the critical support of $1300. From there, the start of the year meeting could continue.
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I am passionate about cryptocurrencies, a world that I discovered just 3 years ago. My only goal is to inform you of this incredible universe through my articles.