Ethereum has seen a strong rally since Sunday after a choppy week following the CPI. Moreover, the economic calendar shows that the markets will be calm this week. Which is possible due to the absence of the big catalyst events. During this time, Ethereum will likely try to rebound. Indeed, investors are instead focusing on the quarterly earnings of tech giants such as Netflix.
Ethereum (ETH) may continue to rebound
The second crypto by market cap gained almost 1% in value on Monday. This rally could continue due to a very light economic calendar. Additionally, a few quarterly releases from major US corporations could set the stage for a positive week. The most anticipated among these publications will be the quarterly results of Netflix, one of the FAANG shares. This event will be the only potential obstacle to prevent Ethereum from continuing to rebound.
Indeed, the price of the perennial second looks set to break past last week’s high at $1342. Once this level is crossed, the next resistance is found a little further on the psychological level of $1400. This is a key level for the bulls to break above to continue the rally.
If buyers enter a daily candle above this bar, it will mean a further upside for Ethereum. Nevertheless, it will be provided that the next candle refrains from going below this level. Then, the target for the week is found around the 50-day moving average and the monthly pivot at $1446.31. If the Ethereum crosses this level, we will wait until the price has finished bouncing there to confirm the bullrun towards $1698.
Downside risks?
Despite Ethereum (ETH) starting the week in the green, there are still downside risks. Comments from President Xi Jinping at the party congress in China this week could be unfavorable for the crypto market. Indeed, a war seems to be approaching following Xi’s declaration to reunify China. If military operations in Taiwan appear, a drop in the price of ETH should be expected. We might even expect the price to drop to $900. In such a situation, it would be difficult for the bulls to bounce the price of Ethereum (ETH).
While a bullish outlook for Ether is likely, it will be difficult if bitcoin continues to decline. On the downside, if Ethereum fails to bounce off $1280, the bullish scenario will be invalid.
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