Why a US May job report could be favourable for Ethereum price
|- Ethereum price sees heavy buying from bulls in the distribution zone.
- ETH price could well be shooting towards $2,148.67 on the back of the catalyst.
- If the US job numbers later today are a big miss, expect dollar weakness to create upside room for ETH.
Ethereum (ETH) price has had a rocky ride these past few days from global markets turmoil as EU oil sanctions hit Russia and the US dollar got thrown around the forex space. This week’s global volatility spilled into Ethereum price action with which it is highly correlated. Now that ETH price is back in the distribution zone, bulls are buying in, which could create a shortage of supply below $1,928.89, and trigger a rally in ETH price aided by the c counterweight of dollar weakness (ETH is priced in dollars) following US job numbers, which are expected to undershoot this afternoon.
ETH price set for 20% upswing
Ethereum price is back in the distribution zone, where bulls buy back into the price action. Proof of that is shown in the Relative Strength Index (RSI) which whilst coming off a bit, is not dipping further to the downside. Expect Ethereum price to await a suitable catalyst for bulls to push price action higher, above $1,928.89 and then rally up towards $2,148.67, taking out $2,000 along the way.
ETH price may find that catalyst later today on the back of a miss in US job numbers. On Thursday, the ADP job numbers already showed the lowest number of new jobs added since the covid outbreak. A drop in expectations could mean a weaker dollar and opens room for ETH bulls to ramp up price action towards $2,148.67, just below $2,200.
ETH/USD daily chart
Given the correlation between ADP and the US job report today is not always strong, however, an upbeat surprise in payrolls would trigger another round of dollar strength. That could lead Ethereum price action to begin another leg lower towards the lower end of the distribution phase at $1,688.39, testing the low of 2022 again. If the price slips further, the only support nearby is $1,430, at the monthly S1 support level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.