The post Ethereum Price Dips After CPI Report, Aims for $3,000 Recovery appeared on BitcoinEthereumNews.com.

Ethereum is on a price rollercoaster post the latest US CPI report, currently consolidating below $2,700. The release of CPI data has injected both optimism and caution into the market, as traders assess the impact on inflation. A notable quote from a market analyst: “Ethereum’s current consolidation phase is critical for its next move upward or downward.” Discover the latest insights on Ethereum’s price volatility following the US CPI report and what it means for future market movements. Ethereum Price Volatility in the Wake of CPI Data Ethereum experienced significant price fluctuations after the release of the US Consumer Price Index (CPI) report. Initially, Ethereum’s price surged above $2,700 but soon retreated to just above $2,600. The wide swings reflect ongoing investor uncertainty in the cryptocurrency market, especially as inflation rates moderate. ETH ETFs and Market Sentiment The performance of Ethereum ETFs has shown mixed results. While there has been a modest inflow over the last two days, the overall sentiment remains bearish. Speculators note that the net outflows have overshadowed the inflows, applying downward pressure on Ethereum prices. Federal Reserve’s Stance and Its Implications The lower-than-expected CPI results have brought inflation down to 2.9%, igniting discussions on potential Federal Reserve actions. Though the Fed has hinted at possible interest rate reductions, the steady core CPI at 3.2% suggests only gradual cuts, thereby affecting the optimism around Ethereum’s potential rally. Technical Analysis and Projections Technical charts indicate a short-term bearish outlook for Ethereum. Key metrics such as the Relative Strength Index (RSI) and Exponential Moving Averages (EMAs) point towards a potential retest of support levels around $2,600. Noted trader Peter Bradt has even suggested a decline to as low as $1,651, citing historical patterns and current trends. Support Levels and Future Outlook According to the IOMAP (In/Out of the Money…

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Filed under: News - @ August 14, 2024 7:24 pm