Ethereum
What’s next for the ETH price?
The US Consumer Price Index (CPI) for May indicated a slight decrease in inflation, falling to 3.3% from 3.4% in April. This had a positive impact on the market, triggering a strong rally in major crypto assets. Bitcoin price is currently heading towards the $70,000 mark. Simultaneously, Ethereum (ETH) has seen an increase in purchasing activity and is now challenging significant price levels, accompanied by an increase in on-chain metrics.
Support lines defended by positive IPC news
The U.S. Consumer Price Index (CPI) was unchanged in May, beating economists’ forecasts for a 0.1% increase and down from 0.3% in April. Annually, the CPI rose 3.3%, matching expectations but slightly below the previous month’s 3.4%.
Excluding food and energy, core CPI rose 0.2% in May, beating forecasts for a 0.3% rise and matching April’s rate. On an annual basis, the core CPI rose to 3.4%, better than the 3.5% expected and down from 3.6% in April.
The crypto market welcomed this weak CPI report and BTC price surged all the way to the high of $70,000, with ETH price testing buyers’ patience at $3,700. According to data from IntoTheBlock, there has been a massive increase in transaction volume over the past 48 hours, with the metric recording over $13 billion in transactions made by Ethereum whales.
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This suggests that whales are accumulating ETH near each price in anticipation of a large move, thereby reinforcing volatility. However, Ethereum network activity has seen a reduction in specific metrics over the past 90 days. According to Glassnode, daily active addresses on the Ethereum network increased from 622,963 on March 20 to 458,400 on June 10. Additionally, there was a 1.2% decrease in the last 48 hours alone.
Although Ethereum is the leader in the layer 1 sector, Solana is gaining ground, particularly in the on-chain business. Data from DappRadar indicates a 9% decline in Ethereum NFT volume over the past week to 105 million, potentially accelerating ETH’s downtrends despite a recent price rebound.
What’s next for the ETH price?
Ethereum is currently on a strong upward trajectory, but it is encountering resistance around $3,660, indicating potential profit-taking by short-term traders. The buyers managed to push the price above the immediate Fib channels and are currently targeting an upside above the EMA trendlines. At the time of writing, the ETH price is trading at $3,624, up over 3.3% in the last 24 hours.
If the price continued its current buying momentum, it would suggest that the bulls managed to convert $3,430 into a support level, thereby increasing the likelihood of an upside towards the $3,740 target. A breakout could push the price towards the $4,000 mark.
Conversely, a slowdown is signaled by a breakout and sustained close below the $3,430 support. If the price falls below the support line, selling pressure could intensify, potentially leading to a decline towards $3,172.