Title : Ethereum Price Pumps and Looks Ready For Another Leg Higher Over $1,400
Oct 14, 2022 12:00 AM ET
Following the release of the U.S. CPI, Ethereum fell sharply against the U.S. dollar. ETH plunged to $1,200 before starting a strong rally and breaking above $1,300.
Ethereum trimmed all losses and broke back above the $1,300 resistance zone.
The price is now above $1,300 and the 100-hour simple moving average.
The hourly chart of ETH/USD shows a break above the downtrend line with resistance near $1,290 (data via Kraken).
The pair appears to be targeting a steady rise above the $1,350 resistance level.
Ethereum's price is up more than 5%.
Like bitcoin, Ethereum faced a sharp decline following the release of U.S. CPI data, similar to the bitcoin price. ETH fell below the $1,250 support level. It even dipped below the $1,200 level before bulls emerged.
A low was formed near $1,188 and the price started a strong rally. There was a rally of more than 5above the $1,250 resistance zone. The ether price fell below the 61.8% retracement level of the decline from the swing high of $1,306 to the low of $1,188.
In addition, there was a break above a major downtrend line with resistance near $1,290 on the hourly chart of ETH/USD. The pair is now above $1,300 and the 100-hour simple moving average.
Immediate upside resistance is near the $1,335 level. It is near the 1,236 Fib extension level of the bearish move from the $1,306 high to the $1,188 low. The first major resistance is near the $1,350 level. A clear breakout to the upside above the $1,350 resistance zone could open the door to further gains.
In the scenario posed, the price could move up towards the $1,400 resistance. Any further gains could push the price up to the $1,500 resistance level.
If Ethereum fails to break above the $1,335 resistance, it could initiate a downward correction. Initial downside support is near the $1,310 level.