Ethereum’s price is still under pressure as investors react to the relatively strong US inflation data released on Thursday, as well as increased competition. ETH is trading at $ 2,437, about 15% below this month’s high.
What happened: Ethereum and other digital currencies are at the forefront after relatively strong economic data released in the US on Thursday. Data showed that the US CPI rose at its fastest pace in nearly 13 years in May.
During the same period, core consumer inflation rose at its fastest rate since 1992. It is fair to say that the year-on-year numbers were off the mark, given that consumer prices plummeted in the previous month. However, these numbers point to a possible tightening earlier than expected given that the labor market is still shrinking. This is an important point for Ethereum’s price because higher interest rates tend to be negative for riskier assets.
Ether also recedes as competition grows. The blockchain network is facing serious competition from other fast-growing platforms like Solana, Polkadot, and Kusama, which are relatively cheaper and faster. Although Ethereum has a significant market share, it may lose some market share as other networks grow.
Ethereum price prediction
The four-hour chart shows that the price of ETH has been in a quandary lately. Most importantly, it struggled to break through the important resistance at $ 2,900, as shown in green. The price is also slightly above the 23.6% Fibonacci retracement level. It is also slightly below the 25-day and 50-day moving averages.
Therefore, in my opinion, the coin will remain under pressure as long as it is below the resistance zone shown below. Any break above that level would push the pair higher towards resistance at $ 3,365, which is at the 61.8% retracement level.
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ETH Price Chart
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