• Ethereum’s native token, ETH, is consolidating just below the weekly highs it printed on Friday in the $1,260s.
• Bulls are targeting a retest of the $1,300 level, which happens to also coincide with the 100-Day Moving Average and the 38% Fibonacci retracement back from the post-FTX collapse lows to the pre-FTX collapse November highs.
• Traders are highlighting next week’s US CPI figures for December as another potentially bullish catalyst for crypto, if the report is in fitting with the recent trend of downside surprises.

The price of Ethereum’s native token, ETH, is continuing to show signs of strength as it consolidates just below the weekly highs it printed on Friday in the $1,260s. The world’s second-largest cryptocurrency by market capitalization remains on course to have gained over 5.0% this week, with traders sighting soft US survey data and lower-than-expected US wage growth as boosting sentiment via an easing of Fed tightening bets.

Bulls are targeting a retest of the $1,300 level, which happens to also coincide with the cryptocurrency’s 100-Day Moving Average and the 38% Fibonacci retracement back from the post-FTX collapse lows to the pre-FTX collapse November highs. The psychologically important $1,300 area acted as an important zone of resistance for much of December prior to a false breakout triggered by softer-than-expected US November CPI figures that was ultimately reversed after a more hawkish-than-expected Fed policy meeting on the 14th of December.

Looking ahead, traders are cautiously optimistic that ETH may be able to break back above the $1,300 level in the near term. This is due to the upcoming US CPI data for December, which could provide a bullish catalyst if the report is in fitting with the recent trend of downside surprises. Lower-than-expected inflation numbers could provide a boost to ETH, as the cryptocurrency benefits from a weaker US dollar.

Overall, it appears that the bullish case for ETH is gathering steam, with traders eyeing a potential break back above the $1,300 level in the near future. However, it is important to note that the cryptocurrency is still consolidating and may not be out of the woods yet. As such, investors should remain cautious and look out for any potential movements in the US CPI data or any other macroeconomic events that could affect the price of ETH.