Ethereum price attracts bulls before testing $3,000

Ethereum (ETH) price action sees bulls surfing into price action on a wave of tailwinds from a risk-on global market environment for the second day in a row. The improvement in sentiment has been driven by more positive signals from both Russia and Ukraine that both sides have changed their stance. Expect to see a pop above the 55-day Simple Moving Average (SMA) once the US cash market opens. This will likely provide additional firepower for bulls to punch through $2,745 for today and break above $3,000 by the end of the week.

Ethereum price set for a 12% upswing

Ethereum price action saw bulls finally making a fist and finding a window of opportunity to drive up the market. With the push-up above $2,574.15 at the start of the week, it looked like sentiment was on the cusp of changing, but the acceleration only kicked in once the Nasdaq shot higher and eked out some nice gains. As this change in sentiment and talks are still ongoing under positive signals from both parties in Ukraine, it looks like a deal could be struck any moment and could see another lift in morale pumping and jumping price action up even further.

ETH price action, for now, has its work cut out for it with the 55-day SMA at $2,745 resisting. Expect to see another test near the US opening bell that will see US investors join the rally and perhaps another jump higher above the 55-day SMA, triggering another group of investors to flow in. It is a bit too early to expect price to reach  $3,018.55 today, as the FED – and tomorrow the BoE – are set to  hike their rates, so expect to rather see that final push only to happen if other positive signals out of Ukraine persist throughout the week.

ETH/USD daily chart

Although this risk-on sentiment is a lot of fun at the moment, it must be underlined that markets are still undergoing a black-swan event, and several agencies are starting to report a shortage of several food components such as sunflower oil and wheat in Europe. With already an initial inflation shock underway, it is clear that another bigger inflation shock is set to happen if Europe is too slow in deviating its exposure and looking for other market participants to fill the gap in supply left by Ukraine and Russia. This can only start to weigh further on global demand and supply chain disruptions and set the scene for a recession that will see ETH price action dip towards $2,400 on a single negative headline. If peace talks fail, ETH price action could even tank to $2,148.67 in just one session or overnight.