July 24, 2024

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Ethereum Drops To $1,300, What’s Next For ETH Price?

3 min read
Ethereum Drops To ,300, What's Next For ETH Price?

Ethereum has been following the general trend in the crypto market, giving back its profit obtained over the past week. The cryptocurrency was moving in tandem with Bitcoin and large cryptocurrencies, but now ETH’s price is reacting to new economic data published in the United States.

At the time of writing, Ethereum trades at $1,300 with a 2% loss and sideways movement in the last week. Other cryptocurrencies in the top 10 by market capitalization record similar price action with the exception of XRP. This token is showing strength against the trend and continues to knock on profits over the same period.

Ethereum Inbound For Another Sideways Week

Data from Material Indicators (MI) shows that Ethereum is seeing some bids at its current levels. This could signal a short-term rally into previous resistance levels neat $1,340 with potential for $1,400.

As seen in the chart below, the Ethereum price has reacted relatively well to the recent price action with bid (buy) liquidity coming in at today’s low. This has supported the price of ETH allowing it to bounce into the area of around $1,340.

Earlier today, the second cryptocurrency by market cap was experiencing a spike in selling from all investors, from retail to whales. However, the selling has been mitigated in recent hours with large players with bid orders of as much as $100,000 buying into Ethereum’s price action.

These players bought over $800 million in ETH on short timeframes and might be able to sustain ETH for a while. Nevertheless, ETH’s price action might be in jeopardy as the market heads into the weekend.

For Ethereum and Bitcoin, $1,200 and $18,500 are key levels to prevent a fresh leg down into the yearly lows. According to a pseudonym trader, as long as these levels hold, the cryptocurrency will hold the line with more days of sideways movement. The trader said:

The moment $18.5K or $20.5K (for Bitcoin) gives in we’ll likely see it followed by a big move. Chop chop and more chop until then. CPI on Wednesday may change it up a bit but as we speak we’re back to the middle of the range.

Ethereum And Bitcoin Poised For Incoming Volatility

On the latter, the upcoming Consumer Price Index (CPI) print for September and today’s data on the U.S. economy show that macroeconomic forces are still in control. So far, the economic data has been positive and has even surpassed expert expectations.

This is negative for Bitcoin, Ethereum, and global markets because it signals that the U.S. Federal Reserve (Fed) can keep up and even turn up the pressure to slow down inflation metrics. In that sense, next week’s CPI print could be one of the key events for ETH, BTC, and the entire industry.

Talking about the potential for the Fed to take a less aggressive stance, and pivot its monetary policy, Keith Alan from Material Indicators wrote:

A FED pivot isn’t likely without something of major significance happening. The #FED wants to see consecutive months of declining CPI and increasing unemployment.