Ether prices rose to their highest level since early November today, rising after global investors responded to the latest US headline inflation figures.
The world’s second most valuable digital currency by total market value surged to nearly $1,350 this morning, according to CoinDesk.
At this point, the cryptocurrency had appreciated more than 7% from its intraday low of roughly $1,250, additional figures from CoinDesk show.
The digital asset surged after US government data showed last month the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1%compared to a 0.4% increase in October.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Since experiencing this rally, ether has managed to retain most of its gains, holding above the $1,300 level, which some analysts have pointed to as crucial.
The digital currency had been trading south of this price level since last month, fluctuating within a relatively tight range.
Brett Sifling, investment adviser at Gerber Kawasaki Wealth Management and InvestmentsHe noted this development earlier, stating that Ether had “been consolidating and bouncing around this $1,085-$1,300 range.”
Tim Enneking, CEO of digital capital managementalso weighed in on this price action.
“Technically, ETH has been more volatile than BTC as the crypto community tries to calculate the metrics to value ETH post-merger,” he noted.
“Despite this, it has been in a limited range (between $1,200 and $1,300) for a month, and between $1,050 and $1,300 since the FTX news broke,” Enneking said.
After noting this, the analyst pointed to some key support levels.
“At this point, we can be pretty sure that $1,000 and $1,200 will hold. If BTC can stay above $17.7K, ETH will surely stay above $1.3K,” he stated.
Enneking also identified some resistance levels that the digital currency could encounter if it continues to appreciate.
“If there are no unusual regulatory or fiat headwinds, ETH could eventually break above $1.5k and think $2k, but that will take a while,” he said.
Armando Aguilar, an independent cryptocurrency analyst, also offered an opinion on the matter.
“Better-than-expected inflation results played a big part in ETH rising more than 7%,” he stated, before speaking about important technical levels.
“Ethereum faced upper level resistance in the mid-$1,300s and if breached, we could see Ethereum recapture the $1,400 price low,” Aguilar predicted.
“At the lower support limit, the first price point is at the mid-$1.2k, if breached, Ethereum could slide to the mid-low $1.1k as seen in November,” he added.
Disclosure: I have some bitcoin, bitcoin cash, litecoin, ether, EOS, and sol.