Ethereum price remains in a consolidation mode as investors await additional cues from the June US CPI data. In the ensuing sessions, the broader class of cryptocurrencies will also be reacting to the Q2’23 earnings season.
Fundamentals
Ethereum price and the broader cryptocurrency market is on hold as investors await the US inflation data set for later on Wednesday. The numbers will shed light on whether inflation in the leading economy has continued to decline. This in turn will offer cues on the Fed’s interest rate decision in coming months.
Analysts expect the CPI index to have risen by 3.1% in June on a year-over-year basis. Notably, financial markets have priced in a 25 basis-point rate hike during the Fed’s next meeting on 25th – 26th July.
However, there are uncertainties over what to expect in its September meeting. This is after the robust US job numbers released last week. The data heightened the probability of further rate increases after June’s pause.
Signs that the Fed may remain hawkish may raise concerns of a recession; an aspect that may weigh on cryptocurrencies and other risk assets. Besides, Q2’23 earnings season from late this week will further impact ethereum price and the broader class of cryptocurrencies.
Ethereum price prediction
A look at ETH/USD price movements in recent weeks signal its probable recovery. Since mid-June when the leading altcoin hit a three-month low, it has been recording higher lows as highlighted with black arrows in the chart below. This is an indication that more buyers entering the market thus strengthening the demand outlook.
A look at its daily chart shows the crypto trading above the 25 and 50-day EMAs. This further hints at its probable recovery.
In the immediate term, the bulls are striving to break the resistance at 1,921.5. If successful, the bulls will be striving to boost ethereum price past the next resistance at 1,976.2 to get to the psychologically crucial zone of 2,000.
As at the time of writing, the crypto was at 1,888.8; up by 0.54%. On the lower side, I expect ethereum price to continue finding support at 1,821.6 in the short term.
