Ethereum price has been trading sideways for the past few weeks after facing a strong rejection from the important level of $1,900. At the time of writing, Ethereum was trading slightly higher at $1,850.88. The asset’s total market cap has slipped to $222 billion, while the total volume of ETH traded over the last day jumped by more than 77%.
Ethereum price has been under intense pressure for the past few days against the backdrop of global uncertainty and a decline in market sentiment. According to Coinmarketcap, the global crypto market has crashed over the past few weeks to $1.17 trillion, while the total crypto market volume surged by nearly 50% over the past 24 hours.
Bitcoin, the largest cryptocurrency by market capitalization, has failed to start a fresh upward trajectory above the crucial level of $30,000, weakening the global crypto market sentiment. A look at the Crypto Fear and Greed Index, the key measure of the emotions driving the crypto market, shows that investors are in conservation mode. The current reading on the index is neutral at 50, down from a Greed level of 64 seen a few weeks ago.
The US dollar jumped to a five-week high on Monday after high inflation readings published last week. Data published by the Bureau of Labor Statistics on Thursday showed that the US headline inflation in July rose slightly from June. The month-on-month Consumer Price Index (CPI) rose by 0.2% in July, matching June’s increase, while the annual inflation rose by 3.2%, up from 3% in June. The US Producer Price Index also grew more than expected in July.
Higher inflation rates give the US Federal Reserve more incentive to further hike interest rates, improving the outlook of the greenback. A stronger US dollar tends to be bearish to the prices of assets, including stocks, commodities, and particularly cryptocurrencies. Even so, the CPI increase in July was smaller than expected, supporting the case for the US central bank to hold steady its interest rates till its next meeting in September. The Federal Open Market Committee (FOMC) is slated to release its meeting minutes later this week on Wednesday.
Ethereum Price Prediction
The daily chart shows that the Ethereum price has been in consolidation mode for the past few weeks, trading between the tight range of $1,885 and $1,830. The asset remains slightly below and above the 50-day and 200-day exponential moving averages, respectively. Its Relative Strength Index (RSI) has improved slightly, moving above the signal line. The Bollinger Bands have narrowed, indicating a decline in market volatility.
As such, the Ethereum price is likely to continue trading sideways in the ensuing sessions, struggling to find direction. A flip above the upper band at $1,888, could pave the way for further gains to the next resistance levels at $1,930.75 and $2,000. However, a move below the crucial support level of $1,845 will invalidate the bullish thesis.
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