Ethereum price has been hovering below the important level of $1,700 for the past few days as investors closely watch key economic data. At the time of writing, the largest altcoin by market capitalization was trading 1.41% lower at $1,641.08. The total volume of ETH traded in the last 24 hours, as well as its total market cap, has declined.
Ethereum price has been under intense pressure for the past few days as investors chew on recent economic data. The digital asset has slightly declined in the past week but remains more than 37% higher in the year to date.
The overall crypto market has been in the red over the last day as macro factors weigh on the markets. Data by CoinMarketCap shows that the global crypto market volume has decreased by 1.29% over the last day to $1.07 trillion. The total crypto market volume has also slipped by more than 8%.
Cryptocurrencies have been in the red for the past day as fears about an aggressive interest rate hike by the US Federal Reserve rise. Traders are betting that the Federal Reserve will raise its interest rates higher than expected in a bid to tame inflation.
Investors are digesting the disappointing ISM Manufacturing Purchasing Managers Index (PMI) released on Wednesday. The report released by ISM showed that economic activity in the manufacturing sector declined in February, recording a 47.7% reading, below analysts’ estimates of 48%. Focus has now shifted to the US initial jobless claims, set to be released today.
Ethereum Price Analysis
The daily chart shows that the Ethereum price has been under pressure for the past few days, dropping below the important level of $1,700. The altcoin is moving slightly above the 25-day, 50-day, and 100-day moving averages. Its Relative Strength Index (RSI) has moved lower, pointing to a slowdown in momentum.
Therefore, the Ethereum price is likely to fall in the short term, but this might be short-lived. Ethereum needs to clear the resistance at $1,685 for a bullish breakout towards $1,735. However, a break below the support at $1,635 might push the price lower to retest $1,600.