Ethereum Faces Critical $3,200 Test Amid CPI Volatility

 As CPI data approaches, Ethereum is testing resistance at 3,200. Analysts pay attention to the critical levels and state that ETH demonstrates structural power despite the sideways movement of the price.

Ether sits just below $3,100 ahead of the significant inflation figure. The asset stands at the crossroads because traders are hedging against potential volatility.

TedPillows on X indicates that ETH is in a sideways trend. He emphasizes that a surge beyond $3,200 will be required to continue on bullish action; otherwise, Ethereum could revert to the 3,000 support level then proceed to the upswing again.

Source: TedPillows

Structural Strength Emerges Despite Range-Bound Trading

The resilience of ETH in the eyes of market observers is relative to the bigger crypto market. Technical patterns suggest that demand is still firm at the present levels.

CyrilXBT on X claimed that Ethereum possesses superior structural features compared to Bitcoin. He emphasized a response that resembles a generational demand area. 

Source:  cyrilXBT 

Higher lows continue forming as buyers defend dips. Although price is still constrained by overhead resistance, compression may come before expansion. The next big jump upwards would start with a mid-range recovery.

CPI Data Creates Three-Scenario Trading Framework

The inflation report issued on Wednesday creates uncertainty in risk assets. Following the release of the data, traders are making contingency plans based on the various price outcomes.

LennaertSnyder wrote on X that Ethereum approaches a high of 3,171. The CPI day complicates defining a directional bias. He identified three potential post-CPI volatility scenarios.

Source: LennaertSnyder 

Should the price rise above the level of $3,171 and exhibit a bearish structure break, traders would take a short position to the level of the strong low of yesterday. When the price remains at or beyond $3,171 in the one-hour chart, it indicates long opportunities, and a retest of the high at $3,300 is the final objective.

The third case will be the loss of the support of 3,060 observed in the New York session on Tuesday. The break would continue to drive prices to the opening of the month of $2,970. It will depend on how the markets absorb the inflation statistics.

Ethereum is predominantly battling the $3,200 point this week. Bulls require explicit power beyond it in order to overcome bearish situations. In the meantime, the generational demand zone is still drawing buyers in with falling prices.

The volatility of CPI will probably determine the course of action. The economy is also prepared to move swiftly in both directions as the data are released.

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