The bitcoin market was up at the start of the day, but with the publication of US inflation statistics, mood has considerably deteriorated. With a loss of -8.80%, Ethereum, which passed the key $1600 threshold, is the worst performer among the top 10.
As a result, Ether is unable to resist the negative pressure brought on the US economic statistics. Investors were not to be complacent, not even in the merger that was set to take place on September 15.
In the US, consumer prices increased by 8.3%, a smaller increase than the 8.5% increase in August, but economists had predicted a decrease to 8.1%.
Core inflation, which does not include volatile items like energy and fresh food, increased from the previous 5.9 percent to 6.3 percent. Additionally, this outcome exceeded expectations by 6.1%.
This is not encouraging for the September 21st Fed meeting. The central bank won’t be able to hint at a halt in rate rises based on the fresh data.
Senior central bankers have already hinted that the Fed may continue to aggressively tighten monetary policy ahead of its meeting next week. Inflation control, according to Fed Chairman Jerome Powell, should be the top goal.
Christopher Waller, a colleague of his, eloquently advocated for “another significant raise in the key interest rate.” He maintains that inflation is still far too high and that it is still too early to predict whether it will considerably and permanently decline.
It appears that the period of high interest rates and difficult financing is continuing, which accounts for the unfavorable reaction of risky assets like cryptocurrencies.
Technical Benchmarks for Ethereum
Today’s closing price was below the $1757 23.6 percent Fibo retracement already yesterday. Today, the price tested this barrier before reversing sharply into the next clear support. This is at $1590, which is the 38.2% Fibo retracement.
In the event that this level is broken on a daily basis, losses should go toward the $1455 level of the 50% Fibo retracement.
The positive rise can only be extended into the crucial $2000 level and the August 14 high at $2028 if one is able to stably break above the 23.6 percent Fibo retracement.