Ethereum Price Turned Bullish Hours After CPI Data Revealed; Should You Enter?

Since last month, the Ethereum price has resonated in the fixed range spread from $1680 to the $1500 mark. With the recent sell-off in the crypto market, the Ethereum price has returned to $1500 support, trying to replenish the exhausted bullish momentum. However, the U.S. Bureau of Labor Statistics released January CPI as 6.4% causing mixed sentiment in the crypto market.

Key Points:

• The long lower price rejection candle at $1500 indicates the buyers are obtaining storing support.
• The Ethereum price will trigger the aforementioned bullish pattern upon the breakout of the $1680 barrier.
• The intraday trading volume in Ether is $10.8 billion, indicating an 18% gain.

Source- Tradingview

The Ethereum coin daily time frame chart showed the formation of a cup and handle pattern. This is one of the famous bullish reversal patterns that showcase a sign of sustained recovery in the market. Under the pattern influence, the coin price managed to surpass a crucial horizontal price level that bolstered further price recovery.

This pattern formation consists of a U-shaped recovery, which is the cup, followed by a minor consolidation/retracement called the handle. Thus, the ongoing consolidation in Ethereum price is the handle portion getting ready.

By the pressure time, the Ethereum price trades at the $1509 mark with an intraday gain of 0.29%. However, over the past five days, the altcoin is hovering above the $1500 support trying to recuperate bullish momentum.

Also Read: Top 10 DeFi Lending Platforms In 2023

Anyhow, the U.S. Bureau of Labor Statistics just announced January CPI as 6.4%, which is higher than the expected 6.2%. Just after CPI data was released, the Ethereum price showed huge price fluctuation, but by press time registered a 3.3% intraday gain.

However, as long ETH price sustained above $1500 support, the above-mentioned bullish pattern will remain valid, and so does its potential to raise a bullish rally above $1680.

On a contrary note, a daily candle closing below $1500 will trigger a longer correction.

Technical Indicator

RSI:  The daily RSI slope rising above the midline indicates the buyer’s confidence is returning to Ethereum.       

EMAs:  the 50-day EMA slope in offering strong support to Ethereum coin price.

Ethereum Coin Price Intraday Levels-

• Spot rate: $1559
• Trend: Bullish
• Volatility: Medium
• Resistance level- $1680 and $1788
• Support level- $1500 and $1420