Ethereum price turned bullish a few hours after the CPI data was revealed. Should you enter?

Since last month, Ethereum price has resonated in the stable range from $1680 to the $1500 mark. With the recent sell-off in the crypto market, the price of Ethereum has returned to the $1500 support, trying to make up for the exhausted bullish momentum. However, the US Bureau of Labor Statistics published January’s CPI as 6.4% causing mixed feelings in the crypto market.

Basic points:

• The lower price rejection long candle at $1500 suggests that buyers are getting storage support.
• Ethereum price will trigger the aforementioned bullish pattern upon breaking out of the $1680 barrier.
• The intraday trading volume in Ether is $10.8 billion, indicating a gain of 18%.

Source- Tradingview

The daily time frame chart of Ethereum showed the formation of a cup and handle pattern. This is one of the famous bullish reversal patterns that show signs of sustained recovery in the market. Under the influence of the model, the coin price managed to break through a critical horizontal price level that fueled further price recovery.

This pattern formation consists of a U-shaped recovery, which is the cup, followed by a small consolidation/recycle called the handle. Thus, the continued consolidation of the price of Ethereum is the handle in the making.

At press time, Ethereum price is trading at $1509 with an intraday gain of 0.29%. However, for the past five days, the altcoin has been hovering above the $1500 support trying to regain the upside momentum.

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Anyway, the US Bureau of Labor Statistics just reported January’s CPI as 6.4%, which is higher than the expected 6.2%. Immediately after the release of the CPI data, the price of Ethereum saw a huge price swing, but at press time it recorded a gain of 3.3% on the day.

However, as long as the ETH price held above the $1500 support, the aforementioned bullish pattern will remain valid, as will its potential to mount an upside rally above $1680.

Conversely, a daily candle that closes below $1500 will trigger a larger correction.

Technical Indicator

RSI: The daily RSI slope rising above the midline suggests that buyer confidence is returning to Ethereum.

EMA: the slope of the 50-day EMA in offering strong support in the price of Ethereum currency.

Intraday Ethereum Coin Price-

• Spot rate: $1559
• Trend: Upward
• Volatility: Moderate
• Resistance level – $1680 and $1788
• Support level – $1500 and $1420