The value of the second crypto by capitalization saw an upward explosion yesterday. Following the release of the Consumer Price Index (CPI), Ethereum price followed the direction of its leader, bitcoin. The eternal second seems ready for a month of December in the green. Check out this technical analysis.
Ether crosses the opening price of the month
Most large-cap cryptos saw an explosion in value following the release of the Consumer Price Index. The bullish impulse started earlier in the day. Supported by the CPI release, this drove bitcoin and Ethereum up 6%. Ripple is also among the big winners, with a total rise of 4.5% yesterday. However, cryptos were not the only winners. The value of major assets, backed by the dollar, was also increasing. Indeed, Gold, EUR and the S&P500 were up 2%, 1.5% and 2.5% respectively.
In the case of Ethereum, this rise allowed it to cross the opening price of the month. This is the $1294.87 level, which can be seen as resistance. With the break of this hurdle, we could envisage a bullish rally for the rest of the month. Thus, it is likely that Ether will close this month around $1500. Indeed, the rise since November was initiated after the price rebounded from a long-term critical level. This support is found around $1070. The upside momentum from this support will need to be strong enough to drive the price past $2000.
Sellers are fighting back
After the explosive rise, the price of Ether fell slightly to $1309. This is due to sellers trying to fight back. On the other hand, the bulls are also starting to close their positions. This lessens the upward pressure, pushing the price down 2.5%. However, it seems that the short-term structure of Ethereum is still bullish. So, it could be that the slight dip is just a retracement move.
Additionally, Ether started today’s session on the upside. If the price breaks through yesterday’s high, a move higher towards $1400 can be expected before the end of the week.
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