Ethereum price has been rallying for the past four consecutive days despite contagion fears following the collapse of Silicon Valley Bank. The largest altcoin by market cap has jumped more than 20% since Saturday and is up by 42% in the year to date. ETH has a total market cap of $209 billion.
Ethereum price has been under intense pressure since the start of the month before staging its recent rebound. The financial sector, especially in the United States, has been treading waters following the failure of several financial institutions in the previous week, notably Silicon Valley Bank and Silvergate Bank. The collapse of Silicon Valley Bank recorded the second-largest bank failure in the United States.
These recent events have been heavily weighing on the crypto market for the past few days. Even so, the crypto community did not stay down for long, as it staged a strong recovery with the crypto leader jumping to the $24,000 zone, carrying the broader crypto market up with it.
The recent rally in the crypto market coincides with the latest US Consumer Price Index (CPI) reading. Data from the Bureau of Labor Statistics shows that the key inflation gauge rose 0.4% in February and 6% year on year, in line with market expectations.
Investors are now eyeing the US Federal Reserve’s meeting set for next week in a bid to gauge where the members stand in their policy outlook. The recent CPI reading seems to be fueling hopes that the Federal Reserve will be less aggressive in its impending interest rate hike. Higher interest rates tend to increase volatility for risky assets such as cryptocurrencies.
Ethereum Price Analysis
The 4-hour chart shows that the Ethereum price has been on strong bullish momentum for the past few days. The altcoin has been hovering above the key support level of $1,500 since Sunday. It has moved above the 25-day and 50-day moving averages and hovers above the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI currently stands at 65.
Therefore, the ETH price is likely to maintain its bullish stance in the future as the buying pressure surges and technicals point to a buy. The next resistance levels to watch will be $1,735 and $2,000.