Why a US May job report could be favourable for Ethereum price

Ethereum (ETH) price has had a rocky ride these past few days from global markets turmoil as EU oil sanctions hit Russia and the US dollar got thrown around the forex space. This week’s global volatility spilled into Ethereum price action with which it is highly correlated. Now that ETH price is back in the distribution zone, bulls are buying in, which could create a shortage of supply below $1,928.89, and trigger a rally in ETH price aided by the c counterweight of dollar weakness (ETH is priced in dollars) following US job numbers, which are expected to undershoot this afternoon.

ETH price set for 20% upswing

Ethereum price is back in the distribution zone, where bulls buy back into the price action. Proof of that is shown in the Relative Strength Index (RSI) which whilst coming off a bit, is not dipping further to the downside. Expect Ethereum price to await a suitable catalyst for bulls to push price action higher, above $1,928.89 and then rally up towards $2,148.67, taking out $2,000 along the way.

ETH price may find that catalyst later today on the back of a miss in US job numbers. On Thursday, the ADP job numbers already showed the lowest number of new jobs added since the covid outbreak. A drop in expectations could mean a weaker dollar and opens room for ETH bulls to ramp up price action towards $2,148.67, just below $2,200.

ETH/USD daily chart

Given the correlation between ADP and the US job report today is not always strong, however, an upbeat surprise in payrolls would trigger another round of dollar strength. That could lead Ethereum price action to begin another leg lower towards the lower end of the distribution phase at $1,688.39, testing the low of 2022 again. If the price slips further, the only support nearby is $1,430, at the monthly S1 support level.