The Ethereum price is in a consolidation mode as investors focus on the upcoming US inflation data. ETH is trading at $2,767, which is about 5.2% below the highest level on May 25.
Ethereum news: Ethereum and other cryptocurrencies were relatively calm during the weekend. They all reacted mildly to the mixed economic data from the United States. The data showed that the unemployment rate dropped to 5.8% in May while the economy added more than 500k jobs.
While the unemployment rate was better than the median estimate of 5.9%, the total job additions were significantly below estimates. Therefore, the Fed will likely justify its cautious outlook for the economy.
This week, the focus will be on the latest US consumer price index (CPI) data that will come out on Thursday. Analysts expect the data to show that the American CPI rose to 4.7% in March while core CPI rose above 3%. A stronger inflation figure will likely push the Fed to become relatively hawkish in the upcoming meetings.
The ETH price will also react to the happenings in the DeFi industry. The industry has also been relatively muted. According to DeFi Pulse, the total value locked (TVL) in the industry has jumped to $67 billion, which is relatively higher than last month’s low of $50 billion.
Ethereum price prediction
The four-hour chart shows that the ETH price is in a tight range. It is trading at $2,767, which is slightly below the important resistance level at $2,915, where it has struggled to move above in the past few weeks. The price is also along the 38.2% Fibonacci retracement level.
The price is also forming an inverted head and shoulders pattern. Therefore, in the near term, we can’t rule out a situation where the price makes a bullish breakout. This will be confirmed if the price manages to move above the resistance at $2,915. However, a drop below the support at $2,558 will invalidate this prediction.