Ethereum’s native token ETH (ETH) looks set to hit the $ 3,500 mark in upcoming sessions as it regained historically strong support on February 5th.

The Ethereum price is above the main trend line again
The price of Ethereum has risen above the 50-week EMA (50-week EMA, red wave in the chart below), which means that the price has also risen above $ 3,000, a psychological support level that can serve as a basis for the next ether rally. one.

Weekly ETH / USD exchange rate chart. Source: Trading View
The 50-week EMA has been instrumental in maintaining Ether’s bullish bias in 2020 and 2021. For example, it served as a strong upside during the market correction in the second and third quarters of last year, raising the price of ETH from around $ 1,700 to $ 4,951 (data from Binance).

As a result, the recovery of the 50-week EMA in support has opened up the possibility of further upside movements towards the next resistance target near the 20-week EMA (green wave in the chart above), which will be around $ 3500.

Meanwhile, a crucial break above $ 3500 could cause ETH / USD to test the horizontal resistance trend line and form a rising triangle pattern. Such a move would lift the Ethereum token to its previous record high of around $ 5,000.

Weekly ETH / USD exchange rate chart. Source: Trading View
Job report can be a spoiler
The latest acquisition appeared on the Ethereum market as a strong source of revenue from Inc. Investors are relying on riskier assets, including technology stocks and bitcoin (BTC).

ETH / USD vs. Nasdaq Composite: Weekly Price Chart. Source: Trading View
Ether is up more than 11% since Friday’s earnings announcement. The rise in prices also increased weekly gains to almost 16%, marking the best week since August 2021.

However, this increase does not appear to be in line with the latest data from Non-Farm Payroll (NFP), which was also released on Friday. Despite fears that Omicron will reduce business activity, US companies added 467,000 jobs in January 2022, well above market expectations.

US Non Farm Employment Data. Source: Bureau of Labor Statistics, Bloomberg.
The Non-Farm Payrolls (NFP) report highlights how difficult it is for the Federal Reserve to anticipate temporary changes in the economy. However, he also assured that the US Federal Reserve will continue to implement its plans to raise short-term interest rates at the meeting of 15-16. March.

At a press conference last month, Federal Reserve Chairman Jerome Powell said they would continue to raise interest rates after the March rise faster than they have done in the past decade if the labor market looks stronger and inflation stays above the 2% target.

RELATED: The US Federal Reserve is making some analysts optimistic about Bitcoin again

The news led to a sale of more risky assets as data showed that in January 2022, $ 61 million worth of cryptocurrency investment products were processed on a weekly basis.

Michael Sonnenchin, CEO of Grayscale Investments, noted: “It is important to note that there is still significant investor demand for investment products for digital assets, but it appears that institutions have responded to the Fed by liquidating their positions.”

The effectiveness of crypto-investment instruments in January 2022. Source: CryptoCompare, FT.
output script
A bearish scenario with a price below the 50-week moving average could cause the EMA to test the lower trend line of its uplink channel around $ 2,500 in support. Meanwhile, a decisive close below the trend line will bring Ether’s Fibonacci retracement levels closer, as shown in the chart below.

Weekly ETH / USD price chart showing Fibonacci retracement levels. Source: Trading View
If a bearish scenario unfolds, the possibility of the ETH / USD falling below $ 2000 cannot be ruled out.

Source: CoinTelegraph