Bitcoin, Ethereum Technical Analysis: ETH Moves Higher as Markets Continue to React to US Inflation Report
Ethereum was trading higher on Friday, as cryptocurrency markets continued to rebound, following yesterday’s U.S. inflation report. The better-than-expected 7.7% CPI (consumer price index) figure for October boosted prices, following recent bearish sentiment. Bitcoin briefly climbed back above the $18,000 level on Friday.
Bitcoin (BTC) moved higher on Friday, as the token rebounded following a recent spell of relatively large sell-offs.
Following a low of $16,290.27 on Thursday, BTC/USD surged to an intraday peak of $18,054.31 earlier in the day.
The move came as the world’s largest cryptocurrency continued to move away from a key support point of $15,800.
As can be seen from the chart, this surge occurred as the 14-day relative strength index (RSI) also rebounded from a recent six-month low.
Currently, BTC is trading at $17,339.58, with the index tracking at 36.89, which is below a long-term resistance point of 39.00.
In order for BTC/USD to continue this current momentum, the RSI ceiling will first need to be broken.
Ethereum (ETH) rose by as much as 8% in today’s session, as the token briefly recaptured the $1,300 level.
Soon after the U.S. inflation report was released, ETH/USD rose to a peak of $1,341.79, moving away from earlier lows of $1,199.24.
The token continues to trade above yesterday’s bottom, and as of writing is residing at the $1,272.95 mark.
Looking at the chart, the 10-day (red) moving average (MA) looks to be on the cusp of a downward cross with the 25-day (blue) MA.
Typically, such a move signals the beginning of a downward trend, which could mean that we have not yet reached a bottom.
Should this be the case, bears will likely be targeting a breakout below $1,000, after failing to move beyond this point earlier in the week.
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Could ethereum slip below $1,000 in the coming days? Leave your thoughts in the comments below.