Ethereum price breaks out as 'bad news is good news' for stocks
Ethereum's native token, Ether (ETH), gained alongside riskier assets as investors assessed weak U.S. economic data and its potential to cool down rate hike fears.
ETH's price climbed up to 8.31% on June 24 to $1,225, six days after falling below $880, its lowest level since January 2021.
Overall, the upside retracement brought bulls 40% in gains, raising anticipation about an extended recovery in the future while alleviating fears of a "clean fakeout."
For instance, independent market analyst "PostyXBT" projected ETH's price to close above $1,300 by the end of June.
In contrast, analyst "Wolf" feared that bears would attempt to "push price back to $1,047," albeit anticipating a run-up toward $1,250 if ETH holds above its diagonal trendline support, as shown below.
$ETH 4h. If the trend change is real, then we will soon find out. Bulls must hold this diagonal and see this type of scenario.Bears, instead will try to push price back to 1047 pic.twitter.com/PRG9fD4iRz
Ether has come under pressure from the Federal Reserve's hawkish policy in 2022. But those fears appear to be subsiding after the latest U.S. composite purchasing managers report, which shows the manufacturing activity fell to a five-month-low.
"Growth is coming down, maybe even sooner than expected," Esty Dwek, chief investment officer at FlowBank, told the Wall Street Journal, adding:
Still, Greg Peters, co-chief investment officer at PGIM Fixed Income, warned that the current rally in the risk-on markets might not last. He is unconvinced that "the central banks will stop tightening if economies slow."
Ether's rebound on June 24 also had it break above a falling resistance trendline that constitutes an "inverse head-and-shoulders" pattern (IH&S).
In detail, Ether
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