The Ethereum pricehas been in consolidation mode in the past few hours. ETH is trading at $1,806, which is 40% above the lowest level last week and 11% below its all-time high.
Ethereum news: ETH has been in a strong upward trend this week because of four main reasons. First, after crashing to $1,293 last week, many long-term investors started to buy the dip, leading to higher demand. Indeed, further attempts to retest last week’s low failed several times.
Second, the price rallied as part of the overall cryptocurrencies rally. Indeed, Bitcoin is slightly below its all-time high and there is a possibility that it will test $60,000 during the weekend. Other currencies like Litecoin, Bitcoin Cash, and Uniswap have also rallied substantially.
Third, Ether price has rallied because of the relatively mild inflation numbers from the United States. On Wednesday, data showed that the overall consumer inflation rose by 1.7% in February. This was in line with the median estimate and was slightly below where some analysts were expecting.
In general, analysts now expect higher inflation in the first half of the year and then it will return to about 2% in the fourth quarter. Finally, Ethereum price will benefit from the $1.9 trillion stimulus package. For one, the government is not only providing $1,400 checks to individuals, it is also providing enhanced employment benefits. Some of these funds will go to ETH and other currencies.
Turning to the three-hour chart, we see that the ETH price has bounced back but it has consolidated in the past few hours. This has seen the price form a bullish pennant pattern that is shown in black. It is also slightly above the 25-day moving average.
Therefore, in my view, the Ethereum price will break-out higher either on Friday or during the weekend. If this happens, the next key level to watch will be the resistance at $2,000. However, a decline below $1,723 will invalidate this trend.