Ethereum price consolidates as G20 meeting between Biden, Xi gets underway

Ethereum (ETH) price action is set to ride the next rollercoaster in global markets as Biden and Xi are set to discuss several topics and address the biggest elephant in the room – the Ukraine situation and Russia. With Biden seeing his Democrats holding the Senate, he will feel backed and supported and will not refrain from making any bold statements or demands. Expect headlines and comments to be key for the sentiment in the coming days.

ETH price action handed over at the direction of the dollar

Ethereum price does not have much to do with these high-stakes talks between China and the US. Rather the spillover effect coming from the dollar will be the dominant driver behind any moves in Ethereum for this week. It must be no surprise that the small uptick this morning goes hand in hand with the US dollar, which has weakened and consolidated further to the downside. 

ETH price action thus could be seen using a window of opportunity as the dollar looks set to weaken further after the US inflation data last week came in much lower than expected. Should some comments from FED members point to a slowdown in their hikes or even a halt, expect the dollar to weaken even more. This will create a supportive tailwind for ETH price with a break above $1,300 first and next a rally toward $1,500 at the monthly pivot.

ETH/USD daily chart

Risk to the downside is coming from the technical slip below the monthly S1 at $1,300, as price action has not been able to open or close above it since Saturday. That means that bears are driving price action further downward and could see a possible squeeze toward $1,100. That would go hand-in-hand with dollar strength and retest of the below of Wednesday when the FTX meltdown was at its peak moment.