Ethereum – Face Up before U.S. Spending Figures
Etherium (ETHUSD) is consolidating above the 300 mark, following Bitcoin 6,000 Dollars breakout, presenting Cryptocurrency demand at the beginning of the trading week.
The No’ 2 cryptocurrency is traded around the 310 dollars, targeting the 350 resistance level. Note that the bullish bias continues in relation to all other cryptocurrencies and in particular Bitcoin that is currently trading at $6142.
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Today, Personal Consumption Expenditure numbers will be released from the United States, and will definitely increase market volatility.
Etherium direction possible scenarios for today:
- Negative data could spur US Dollar sell-off, thus increasing Cryptocurrency demand and fueling the ETHUSD to test the 350 resistance, validating the bullish consolidation pattern.
- Positive spending data could reduce risk appetite and Cryptocurencies demand. In this scenario, the ETHUSD is expected to be traded between 280 and 310 with temporary price fluctuations.
It is nice to know that:
Personal Spending data is an economic figure which measures a number of money individuals are spending monthly. When the statistics show an increase in personal spending it is often a reflection of greater job security and sometimes better wages being earned. The data is a good source for investors to gauge the economic outlooks of the public and its potential effects on growth prospects. While the figures are also affected by seasonality, data outcomes which show a progression of better personal spending over a period of a few months is a positive sign for traders. An improving personal spending number can help boost market confidence among equity and forex traders. However, the results of data must also be correlated to the effect inflation has on the amount of spending, because if the increase in spending has developed only because goods are more expensive – this can be a negative result.
Yaron Mazor is a senior analyst at SuperTraderTV.
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