Following the crypto market lead, Ethereum is roaring up the charts after the turn of the year.
The cryptocurrency grew by over 14% since December 31st. Since then, the asset grew from $1,190 to today trading at around $1,420. In the last 24 hours, Ethereum grew by a whopping 7% increase.
Today marks a 2-month high for Ethereum, the last time the layer-1 blockchain was around the $1,400 zone was on the day before the FTX collapse tanked the entire cryptocurrency market as a whole.
Ethereum Price Action Analysis
The second-largest cryptocurrency by market capitalization just overcame one of the most important resistance/support zones in its history.
Ethereum’s $1,300 zone has proven an important zone since January 15 of 2018 when the asset first tested that margin.
The second time Ethereum reached that zone was on January 17 of 2021. On that occasion, the crypto would incrementally grow in its biggest rush to date, reaching an all-time high of $4,724 a few months later.
Ethereum’s Rise Reflects Optimism From CPI Index Report
Today, on January 12, the United States Government released the consumer price index for the month of December.
According to the Labor Department, the consumer price index declined 0.1% month over month in December after gaining 0.1% in November.
Overall, the CPI Index climbed at an annual rate of 6.5%, which, although not entirely encouraging, is a significant decline from the previous month’s 7.1%.
Ethereum reacted extremely well to the report. With the indication that the Federal Reserve is finally winning its battle against inflation, riskier assets like ETH become extremely more popular.
If ETH consolidates around the $1,500 zone, the next major milestone would be to gain back the losses inherited by Sam Bankman-Fried’s company bankruptcy.
Two days before the FTX crash, Ethereum traded at around $1,649. If the asset reaches that milestone in the near future, that would indicate a 16% increase from its current price.