Written by 9:26 pm Cryptocurrency

Ether Prices Reached A 1-Month High Today—What’s Next For The Cryptocurrency?

Ether prices rose to their highest since early November today, climbing after global investors responded to the latest U.S. headline inflation figures.

The world’s second-most valuable digital currency by total market value increased to nearly $1,350 this morning, according to CoinDesk.

At this point, the cryptocurrency had appreciated more than 7% from its intraday low of roughly $1,250, additional CoinDesk figures show.

The digital asset rose after U.S. government data showed that last month, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1%, compared to a 0.4% increase in October.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Since experiencing this rally, ether has managed to retain most of its gains, staying above the $1,300 level, which some analysts have singled out as being crucial.

The digital currency had been trading south of this price level since last month, fluctuating within a relatively narrow range.

Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, noted this development previously, stating that ether had “been consolidating and bouncing around in this $1,085-$1,300 range.”

Tim Enneking, managing director of Digital Capital Management, also weighed in on this price action.

“Technically, ETH has been more volatile than BTC as the crypto community tries to work out the metrics for valuing ETH post-Merge,” he noted.

“Despite this, it’s been range-bound (between $1,200 and $1,300) for a month, and between $1,050 and $1,300 since the FTX news came out,” said Enneking.

After pointing this out, the analyst pinpointed some key support levels.

“At this point, we can be quite confident that $1,000 and $1,200 will hold. If BTC can stay above $17.7k, ETH will almost certainly stay above $1.3k,” he stated.

Enneking also identified some resistance levels that the digital currency could encounter if it continues to appreciate.

“If there are no unusual fiat or regulatory headwinds, ETH could finally break above $1.5k and think about $2k – but that will take a while,” he said.

Armando Aguilar, an independent cryptocurrency analyst, also offered a take on the matter.

“Better-than-expected inflation results played a major role in ETH climbing more than 7%,” he stated, before speaking to important technical levels.

“Ethereum faced upper-level resistance at the mid $1,300’s and if breached, we could see Ethereum regain the low $1.4ks price,” Aguilar predicted.

“On the lower support bound, the first price point is in the mid $1.2k and if breached, Ethereum could slide to mid-to-low $1.1k as seen in November,” he added.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.

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