Ethereum's path ahead is marked by a mix of positive and challenging signals. Despite a 1.7% dip on Wednesday, the crypto community remains optimistic. Rising ETF inflows, fueled by lower-than-expected CPI inflation, hint at a potential rebound, but a crucial trendline suggests ETH might need to consolidate before making its next move.
The latest US Consumer Price Index (CPI) data showed a drop to 2.9% year-over-year, below the anticipated 3.0%. This has increased the likelihood of the Fed cutting CME interest rates by 25 basis points to 56.5%, a development that could support Ethereum in the coming weeks.
Ethereum ETFs saw net inflows of $24.3 million on Tuesday, marking two consecutive days of positive momentum. BlackRock's ETHA recorded net inflows rising to $49.1 million, pushing its total to $950.2 million since launch. Fidelity's FETH also gained $5.4 million. However, Grayscale's ETHE faced a setback, losing $31 million and bringing its total losses to $2.32 billion.
Meanwhile, Jump Trading appears to be offloading some of its ETH holdings, potentially impacting short-term price movements. After staking 17,049 ETH worth $46.44 million via Lido Finance, the firm may be preparing for more significant sales, adding to the market's current volatility.
Ethereum's price action reflects these dynamics, as it failed to break the downward trendline, encountering resistance at $2,799. This suggests a short-term bearish outlook, with the possibility of ETH dipping to the swing low between $2,000 and $2,100.
Will Ethereum hold its ground, or will the market see further consolidation before the next upward move? The crypto world is watching closely.
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