Like Bitcoin, Ethereum continues to surprise in light of many headwinds that range from economic issues in China and risks of higher rates if inflation remains stubbornly high given the resilience in the labour markets and consumer spending.
Ethereum Technical Analysis – Daily Timeframe
On the daily chart, we can see that Ethereum seems to be bottoming out near the trendline where we can find the confluence with the 50% Fibonacci retracement level and the 1816 support. This is where the buyers are stepping in with a defined risk below the trendline to target a breakout of the 2029 resistance. If the price falls below the trendline, we should see the sellers piling in more aggressively to target the 1681 support.
Ethereum Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price action has been rangebound around the support area as the market is awaiting a catalyst to push more strongly on either side. This gives us a clear setup as a break above the 1880 resistance should lead to a rally into the 2029 high, while a break below the trendline should trigger a selloff into the 1681 support.
Ethereum Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a minor downward trendline defining the current bearish trend. This is another level for the buyers to watch out for as a break above it might take the price into the 1880 level.
Upcoming Events
This week is a bit empty on the data front and the most important release will be the US Jobless Claims tomorrow. Readings in line with expectations should be the most favourable scenario. In fact, in case we see a big beat, we may see more hawkish expectations around interest rates that can weigh on Ethereum. On the other hand, a big miss is likely to cause recessionary fears and lead to risk-off sentiment which might cause a selloff in the cryptocurrency.
