Ethereum price remains under pressure as the crypto market remains one of the most impacted industries by the persistent risk-off sentiment. Interestingly, the cryptocurrencies have been moving in tandem with the stock market and will likely continue with the same trend in the ensuing sessions.
For the third week in a row, both the risk-on assets have been range-bound after plunging to multi-month lows in mid-June. Notably, the movements have largely been founded on the high inflation and subsequent bets on the Fed’s aggressive tightening of its monetary policy.
The US CPI data released earlier on Wednesday indicated that consumer prices rose at the highest pace in about 41 years; exceeding experts’ expectations. Investors were keenly watching the figures for clues on the health of the economy and Fed’s probable position with reference to increasing interest rates.
As will likely be the case with the stock market, ethereum price and the broader crypto market is set to remain in the bear market in the short term. Granted, it may remain above June’s lows as long-term traders maintain a glimmer of hope that the sector will record a rebound in coming months.
The digital assets gained popularity as an inflation hedge. However, its movements in recent months has weakened that argument.
Ethereum price prediction
In addition to the fundamentals, the technicals signal the possibility of the crypto remaining under pressure in the short term. To begin with, ethereum price has continued to trade below the 25 and 50-day exponential moving averages as shown on a four-hour chart.
In the previous session, the two technical indicators formed a death cross; which is a bearish pattern that forms when the short-term MA (25-day EMA) crosses the long-term one (50-day EMA) to the downside. The formation of a double top pattern further substantiates the bearish outlook.
In particular, the critical level of 1,200 will likely remain evasive for ETHUSD in the short term. With this in mind, the range between the 25-day EMA at 1,109.62 and the current support level of 1,047.33 will be worth watching.
With the persistence of the risk-off sentiment, the bears may take another chance at hitting the lower level of 990 after lacking enough momentum to do so in Wednesday’s session. On the flip side, further rebounding may probable place the resistance level at 1,171.91.