Ethereum price prediction: Wedge forms ahead of US Inflation data

July 12, 2023 01:00 PM AEST | By Invezz

Ethereum price prediction: Wedge forms ahead of US Inflation data — Image source: Invezz

US inflation data ahead

Ethereum and other cryptocurrencies have been in a consolidation phase. Bitcoin has remained stuck slightly above $30,000 in the past few days. This consolidation is mostly because there has been no major news in the industry.

The most recent crypto news was about the ETF applications by companies like Blackrock, Invesco, and Ark Invest. Unlike the previous proposals, these ones have incorporated a surveillance clause, which will help to prevent market manipulation.

A successful spot Bitcoin ETF application will be good for Ethereum, the second-biggest cryptocurrency in the world. For one, analysts believe that these companies will also apply for a spot ETH ETF.

The next important catalyst that could move Ethereum and other cryptocurrencies is the upcoming US consumer inflation data. As I wrote here, most analysts believe that America’s inflation eased in June.

Economists polled by Reuters expect that annual inflation dropped from 4.1% in May to 3% in June. If they are correct, it will be the lowest inflation figure in months. It will also mean that inflation is on track to hit 2% in the next few months.

While Wednesday’s inflation figure is important, it will have no major impact on Ethereum and other cryptocurrencies. That’s because the number will not impact the next Fed decision. Most economists expect that the Fed will deliver a 0.25% hike in July since core inflation is still above the 2% target.

Ethereum price prediction

ETH chart by TradingView

The 4H chart shows that ETH price has drifted upward in the past few days. It has jumped from last week’s low of $1,825 to $1,880. It is consolidating at the 25-period and 50-period exponential moving averages.

Ethereum remains lower than the important resistance level at $1,928 (May 28 high). Most recently, it has formed what looks like a rising wedge pattern, which is usually a bearish sign. Also, the coin has created a head and shoulders pattern.

Therefore, there is a likelihood that Ethereum price will have a bearish breakout in the coming days. If this happens, the next level to watch will be at $1,800.

The post Ethereum price prediction: Wedge forms ahead of US Inflation data appeared first on Invezz.

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