Ethereum Remains Intact Above $1,000 Despite High Inflation Numbers
The price gained by double digits on Friday
Ethereum has formed inside bars and is preparing for a breakout
Ethereum ETH/USD remains in a bear market despite posting double-digit gains on Friday. However, Ethereum enthusiasts have reason to be optimistic about its price.
Ethereum kept the $1,000 level intact. This is good news given that the cryptocurrency was weighed down by inflation data on Wednesday. At the current price of $1,198, Ethereum is still pushing higher. A higher-than-expected 9.1% jump in inflation rattled the markets. At the very least, cryptocurrencies had to stay suppressed due to high inflation. Ethereum’s latest gains confirm that investors are developing thick skin. This means that the cryptocurrency has somewhat started to appreciate in the high inflation environment.
We cannot confirm that Ethereum is bullish after the latest gains. However, we believe the cryptocurrency is heading for a major breakout. The breakout will usher in a bullish era and end speculation of a potential collapse to as low as $700. The chart below reveals it all.
Ethereum forms inside bars at key support
Source – TradingView
On the weekly chart, Ethereum formed several inside bars at minor support at $1,000. Inside bars are a communication of market indecision. However, we are drawn to the fact that Ethereum has been in a bear market. Indecision is a potential indication of bear exhaustion and buyers entering. Additionally, the price rose, suggesting a potential bullish reversal.
A potential breakout of the parent bar’s inner bars will make Ethereum bullish. The breakout will occur at around $1,440, allowing ETH to recover another support.
Ethereum’s breakout of the inside bar pattern will confirm a bullish reversal. Buyers will be able to safely buy at around $1,440, which will be the support after the breakout.