The Ethereum price held steady on Thursday morning as market participants waited for the upcoming US inflation data. ETH was trading at $4,400, a range it has been at in the past few days. This price is a few points below the year-to-date high of $4,945. So, will it rise or fall ahead of the US Inflation data?
Ethereum price waits for US inflation data
ETH price remained in a tight range a few points below its all-time high as investors waited for the upcoming US inflation data.
Economists polled by Reuters expect the data to show that the headline Consumer Price Index (CPI) continued to rise in August as the impact of Donald Trump’s tariffs continued.
The average estimate is that the headline CPI rose from 2.7% in July to 2.9% in August, continuing a trend that has been happening in the past few months. They expect the CPI to rise from 0.2% to 0.3% on a MoM basis.
Core inflation, which excludes the highly volatile food and energy prices, is expected to come in at 3.1% on a YoY basis and 0.3% on a MoM basis.
However, inflation may not rise as expected in August. A report released on Wednesday showed that the headline Producer Price Index (PPI) dropped from 3.1% in July to 2.6% in August, while the core PPI moved from 3.4% to 2.8%.
US inflation numbers have an impact on Ethereum and other cryptocurrencies. A lower-than-expected figure means that the Federal Reserve may decide to cut interest rates by 0.50% next week.
Such a move would boost risk assets as it would fuel a rotation from safe assets like bonds to cryptocurrencies and stocks. It would also lower the value of the US dollar index.
ETH ETF inflows are continuing
Ethereum price is also rising as hopes of more demand rise. SoSoValue shows that the investors added $171 million in inflows on Wednesday, much higher than the $44 million it added a day earlier. These inflows are notable because the funds experienced outflows in the previous six consecutive days.
Ethereum ETFs have had cumulative inflows of over $12.84 billion, with BlackRock’s ETHA having the most of them at.$12.7 billion.
Grayscale’s ETHE had outflows of $4.58 billion, while Fidelity has had over 3.2 billion in inflows.
Other parts of the Ethereum network are doing well, with data showing that the stablecoin supply soared by 11% in the last 30 days to $157 billion, and the number of transactions rose to 22.7 million.
Ethereum has also become a major player in the decentralized finance industry, where its assets have soared to over $202 billion.
Ethereum price technical analysis
ETH price chart | Source: TradingView
The daily chart above shows that the Ethereum price was trading at $4,405 on Thursday, a few points below the all-time high of $4,944.
Ethereum price remains above all moving averages, a sign that bulls remain in control for now. Most importantly, it has formed a bullish pennant pattern, which is characterized by a vertical line and a symmetrical triangle pattern.
Therefore, the most likely ETH price forecast is where it soars and possibly hits the important resistance level at $5,000. A move above that price will point to more gains, potentially to $6,000.
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