Ethereum is on a consolidation pattern after the US inflation data. According to the US Department of Labor, the headline CPI rose by 5.0% compared to the forecasted 4.7% on a year-on-year basis. It is the highest level since August 2008. With the exclusion of food and energy components, core CPI has come in at 3.8%, which is higher than the forecasted 3.4% and the prior month’s 3.0%. It is its highest level since January 1992.
As for the initial jobless claims, the presented 376,000 represents a decline from the prior week’s 405,000 and expected 370,000. Notably, the inflation concerns are still palpable. However, as observed in Ethereum price movements and other markets, the fears seem to have dwindled. This is founded on the Fed’s insistence that the inflationary pressures are transitory and that will allow it to run past its 2% target for a while.
ETH price forecast
Ethereum is down by 2.769% at 2,538.42. It is trading sideways after hitting a one-week low of 2,309.17 on Tuesday. On a two-hour chart, it is trading along the 25-day EMA and slightly below the 50-day EMA. I expect the crypto to continue trading within a tight range in the near term. The borders of the horizontal channel are likely to be at the prior session’s intraday high of 2,631.63 and low of 2,453.51. A move past these levels will invalidate this thesis.