Ethereum’s local token, Ether (ETH), gained investors with risky assets as they assessed weak US financial data and its ability to cool down fears of rate hikes.
Ether Risk on Recovery
ETH’s price rose 8.31% to $ 1,225 on June 24, its lowest level since $ 2080, six days later at $ 880.
Overall, the upside rebound saw the Bulls gain 40%, boosting expectations for extended recovery by alleviating the fear of “clean wakeout” in the future.
For example, the independent market analyst “PostyXBT” Is planned The price of ETH will be over $ 1,300 by the end of June.
In contrast, analyst “Wolf” feared that the Bears would try to “push the price back to $ 1,047”, although ETH expects a run-up to $ 1,250 if its diagonal trendline support is shown below.
$ ETH 4 h.
If the trend change is real, we will find out soon. The Bulls need to hold this diagonal and watch this kind of situation.
The Bears, instead, try to push the price back to 1047 pic.twitter.com/PRG9fD4iRz
– Wolf (@IamCryptoWolf) June 21, 2022
In 2022, the ether is under pressure from the Federal Reserve’s hawkish policy. But those fears seem to be easing after a recent US combined purchasing manager report, which shows that manufacturing activity is down five months-to-date.
“Growth is slowing down, perhaps sooner than expected,” Flubbank’s chief investment officer, ST Dweck, told the Wall Street Journal:
“This will allow the Fed to soften at some point.”
Still, Greg Peters, co-chief investment officer of PGIM Fixed Income, warned that the current rally in risk markets would not survive. He was not convinced that “if the economies slow down, the central banks will stop tightening.”
Classic bullish reversal setup in the game
On June 24, Ether’s rebound broke the trend of falling resistance forming an “inverse head and shoulders” pattern (IH&S).
In detail, the ether forms the IH&S model after forming three bins below the normal support level known as the neckline. Also, the middle tank comes out much deeper than the other two, which are more or less the same height.
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Traditional analysts see IH&S as a bullish reversal setup, that is, they resolve after the price breaks above their neckline support. As a rule, IH&S may rise as high as the price after the breakout.
As a result, Ether has expanded to $ 1,560 after breaking its IH&S neckline, which is about 33% higher than today’s price. Interestingly, the IH&S profit target is near $ 1,537 with ETH’s 200-4H exponential moving average (200-4H EMA; blue wave).
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