Ethereum sees a 4% rebound in 24 hours following positive US inflation data. Trading volumes surge by 42%, with analysts closely watching the critical $2,800 level. Can ETH reclaim the psychological barrier of $3,200 by the year-end celebrations?
The cryptocurrency market has reacted positively to the latest U.S. inflation report, offering Ethereum a much-needed boost after several weeks of consolidation. The 4% surge in 24 hours is accompanied by a sharp increase in trading volumes, up 42%. These volumes now represent 10% of ETH’s total market capitalization, a notable signal of buying pressure.
Trader Ted Pillows, followed by more than 250,000 users on X, has identified a key support zone between $2,700 and $2,800. As long as this area holds, he anticipates a bullish move toward $3,100 to $3,200. Conversely, a breakdown would expose a return to $2,500, a scenario that bulls are eager to avoid.
The fear and greed index shows a score of 21, indicating extreme fear in the market. Historically, this type of pessimism often acts as a contrarian signal. Phases of excessive capitulation frequently precede technical bounces, especially when fundamentals remain solid.
On the 4-hour chart, Ethereum recently bounced strongly from $2,800. The price is currently testing the upper boundary of a descending channel that has been in place for several weeks, a configuration closely watched by swing traders on the lookout for a bullish breakout.
The RSI has just entered oversold territory on this timeframe. During previous occurrences, ETH rapidly broke above $3,000. If this pattern repeats, the coming days could prove decisive.
Resistance levels to watch are initially around $3,050, a key level to confirm a trend reversal. Beyond that, the $3,400 zone would offer upside potential of approximately 15%. Maintaining buying momentum will be essential to validate this scenario, in what remains a volatile year-end context.
Take advantage of Ledger’s Christmas offer: 50% off your wallet to secure your crypto. Buy your ETH with ease and keep them safe for the long term.
Related articles:
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
