Ethereum price action could jump in a calm week
|- Ethereum price action set to rally 10% as markets calm down.
- ETH price uses a window of opportunity and low volatility to squeeze some gains.
- Expect to see $1,400 breached later this week.
Ethereum (ETH) price action has seen a strong recovery that started on Sunday after the dust settled following the events of last week. Additionally, a lack of big catalysing events on the data front this week suggests a window of calmness may open up for markets. During this time ETH price action will probably try to eke out some gains as markets turn their focus instead to quarterly earnings from Netflix, Goldman Sachs and Snap later this week.
ETH price has a rare opening to rally in this bear market
Ethereum price action is up nearly 1% on the day this Monday as traders venture small-sized positions in risk assets. No real central bank speakers are featured on the docket, a very light economic data calendar and a few interesting quarterly updates from a few big equity names might be setting the scene for a positive week. The biggest issue will be on Tuesday when Netflix, one of the FAANG stocks to watch, releases its earnings, providing what might be the one speed bump this week.
ETH price looks poised to jump above $1,342, which was the high of last week. Once that level is cleared, not much lies in the way in the form of resistance except the $1,400 psychological level, a key level to be reclaimed by the bulls in order to continue the recovery rally. If bulls can get a daily close above that bar and refrain from fading back below it the next day, the 55-day Simple Moving Average (SMA) and the monthly pivot are up for grabs at $1,444 by the end of the week.
ETH/USD Daily chart
In terms of risks to the downside, these are mainly comprised of comments from president Xi during the party congress in China this week. In an opening statement, Xi mentioned that Taiwan will be reunited with China and that he will make it one of his top priorities during his next presidential mandate. This means that war is coming, and war in Taiwain would be ten times worse than what we have experienced thus far in Ukraine. Should signs emerge of a military excursion into the area, expect to see sharp moves lower, with ETH set to drop below $1,100 in a nosedive move towards $900.
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