Ethereum Technical Analysis – Bounce on a key support

like its big brother Bitcoin, continues to surprise as it remains resilient to
many headwinds. Yesterday we saw a big rally after some banking woes, which
resembled the bullish reaction following the regional banking crisis seen in
March. Looks like the cryptocurrencies like Bitcoin and Ethereum are the go-to
assets in case we see more troubles in the banking sector. The price action
remains choppy amid many drivers lately, so the technicals are the only way to
play it.

Ethereum Technical Analysis
– Daily Timeframe

On the daily chart, we can see that Ethereum fell
all the way down to the 1816 support where we
had also the 50% Fibonacci retracement level.
The buyers stepped in, and we saw a nice bounce. The momentum is slowly
starting to favour the bulls although they will still have some key levels to
take out before getting back to the highs.

Ethereum Technical Analysis
– 4 hour Timeframe

On the 4 hour chart, we can see that yesterday we
got a breakout of the trendline that was
keeping the buyers at bay and we saw a quick spike into the 1880 swing high.
That will be the level to break for the buyers if they want to confirm the
breakout and rally towards the highs. If the price falls back below the
trendline, it might turn into a fakeout and we could see a selloff back into
the 1816 support.

Ethereum Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, we can see more
closely the key levels to watch for the buyers and sellers. The swing high at
1880 for the buyers and the trendline for the sellers.

Upcoming Events

This week the
main events will be the US CPI and Jobless Claims reports tomorrow. For the US
CPI, the market is likely to focus more on the Core readings as this is what
the Fed is more interested in. Higher than expected data may lead to a risk off
sentiment as the market should start to price in a more hawkish Fed and it
might weigh on Ethereum as well. On the other hand, lower than expected
readings may lead to a risk on sentiment due to the soft-landing narrative and
no more rate hikes and support the cryptocurrency. At the same time of the US
CPI data, we will also see the latest US Jobless Claims report, which might
have an even bigger effect if the data shows a big surprise. In fact, a miss
may cause recessionary fears and lead to a selloff in Ethereum, while a beat
may be taken as bad news because the Fed may keep on hiking.

This article was written by FL Contributors at Source