Ethereum price has been experiencing a period of consolidation and sideways trading in recent weeks. After facing a strong rejection at the $1,900 level, Ethereum is currently trading slightly higher at $1,850.88. The total market cap of Ethereum has slipped to $222 billion, while the total volume of ETH traded over the last day has seen a significant increase of more than 77%.
The current state of Ethereum’s price can be attributed to a variety of factors. One major influence is the overall market sentiment and global uncertainty. The global crypto market has experienced a crash, with its total value declining to $1.17 trillion. However, there has been a surge in the total crypto market volume, which has increased by nearly 50% in the past 24 hours.
Bitcoin, the largest cryptocurrency by market capitalization, has failed to make significant gains above the crucial level of $30,000. This has weakened the overall sentiment in the crypto market. The Crypto Fear and Greed Index, which measures the emotions driving the market, currently sits at a neutral level of 50. This is a decline from the Greed level of 64 seen a few weeks ago.
Another factor affecting Ethereum’s price is the performance of the US dollar. The US dollar recently reached a five-week high due to high inflation readings. The US Bureau of Labor Statistics published data showing that the US headline inflation in July rose slightly from June. This increase in inflation rates gives the US Federal Reserve more incentive to consider hiking interest rates, which in turn strengthens the US dollar. A stronger US dollar tends to be bearish for the prices of assets, including cryptocurrencies.
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However, it’s important to note that the July CPI increase was smaller than expected, which supports the case for the US central bank to hold steady its interest rates until its next meeting in September. Investors will be paying close attention to the release of the meeting minutes from the Federal Open Market Committee (FOMC) later this week on Wednesday.
Taking a closer look at Ethereum’s price prediction, the daily chart shows that the asset has been in consolidation mode within the range of $1,885 and $1,830. The price is slightly below the 50-day exponential moving average and slightly above the 200-day exponential moving average. The Relative Strength Index (RSI) has improved slightly, moving above the signal line. Additionally, the Bollinger Bands have narrowed, indicating a decrease in market volatility.
Based on these technical indicators, it is likely that Ethereum will continue to trade sideways in the near future, struggling to find a clear direction. However, if the price manages to flip above the upper Bollinger Band at $1,888, it could potentially pave the way for further gains, with resistance levels at $1,930.75 and $2,000. On the other hand, if the price falls below the crucial support level of $1,845, it would invalidate the bullish thesis.
In conclusion, Ethereum price has been stagnant in recent weeks, largely influenced by the overall market sentiment and global uncertainty. The performance of Bitcoin and the US dollar has also played a role in shaping Ethereum’s price trajectory. Moving forward, investors will closely monitor market developments and important support and resistance levels to determine the next potential direction for Ethereum.
