Ether Surges as US Dollar Takes a Hit

The cryptocurrency ether's technical picture is looking brighter after a sharp rebound that saw it gain nearly 31% in just one week. This move comes on the heels of a surprise announcement by the U.S. Treasury, which announced a bond buyback plan that weighed heavily on the U.S. dollar.

This unexpected turn of events has erased all of ether's losses from its April monthly high, with some technical analysts warning that the rapid rally may not continue unchecked. The daily Relative Strength Index, a widely used gauge of momentum, is in overbought territory, suggesting that ether has entered a 'distribution' phase where early buyers take profits and others enter the market in anticipation of further gains.

However, if ether can push through resistance, traders may initially target the $2,775-$2,825 zone, followed by $3,040-$3,070 and possibly even $3,400-$3,450. On the downside, a fall below $2,200 would undermine bullish sentiment.