- Ethereum price witnessed bearish pressure as CPI data indicated an inflation rise.
- Bitcoin and Ethereum see significant outflows.
Since the beginning of this month, the ETH price has seen a downtick and significant selloffs have occurred. ETH Bulls are currently trying to fetch the 20-day EMA mark and stay on the back foot.
The rise in CPI led to anxieties over rate hikes, and Ethereum price faced a significant selloff. The ETF outflow was due to market risk, and IntelMarkets emerged as a new form of investment plan.
ETH price drops Below Key EMAs Following CPI Data Release
The recent downward pressure was noticed after the recent CPI data release. Data indicated that inflation increased by 2.4%, which rose by 1.1% YoY.
A single-digit uptick in inflation data alarms investors about the interest rate hike to tame an already aligned bearish crypto market.
The ETH price reacted negatively after the data release and witnessed an intraday decline of over 3%. Later, it recovered around 2%. However, it struggled to cross the 20-day EMA mark hurdle.
A downward channel pattern was witnessed. Also, the Ethereum price continued to trade under bearish influence.
Bitcoin, Ethereum ETFs Hit by Substantial Outflows Amid Market Volatility
According to Lookonchain, the last figures were still bearish. Furthermore, the outflows outweighed the inflows for both the Bitcoin and Ethereum ETFs.
Bitcoin ETFs also saw a net outflow of 983 BTC or $59.62 Million. It was buoyed by an outflow of 729 shares from ARK21Shares. This negative data indicated that investors remain cautious amid the unfavorable market sentiment.
Ethereum ETFs were also down for the week, experiencing negative net flows of 253 ETH, worth about $598,000. Among the exchanges, the Ethereum Trust, operated by Grayscale Investments, saw the biggest outflow and had 112 ETH or $265.5K.
These outflows hinted at sustained selling pressure in Ethereum ETFs as an indication of bearish sentiment.
Ethereum Price Prediction: What Do Charts Say?
Ethereum’s daily chart analysis conveyed a minor bearish stance. This happened as a result of the ETH price continued to undergo a significant selloff in the past few sessions. It has been trading inside a falling channel, forming a series of lower lows.
The ETH price was trading at $2418 at press time, surging over 1.20% over the last 24 hours. However, it struggled to cross the 20-day EMA zone and displayed a lack of bullish momentum.
The Relative Strength Index (RSI) stood around 44, close to the midline region, depicting neutrality on the chart. Meanwhile, the Ethereum price has strong support of around $2350, which bears were targeting to break for an extended decline.
Per the price action, the correction seems to be nearing an end. Additionally, a significant dead cat bounce toward $2600 could be seen in the following sessions. For a significant breakout, bulls need to break the trendline barrier of $2800 for a substantial rise.
Since mid-September, the OI-weighted funding rate has remained positive. That showed the demand for long positions. At press time, the funding rate was noted at 0.0090%.
The immediate support for Ethereum was $2350 and $2170. At the same time, the resistance levels were $2550 and $2790.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Dr. Naveen Singh is an entrepreneur with achievements in sports, academics, healthcare, innovation, blockchain technology, telecommunications, and philanthropy. He is the Co-Founder and Chief Executive Officer (CEO) of Inery, the first layer-1 blockchain programmed for database management. With Inery, he aligns with his vision of a new paradigm for data to empower web3 and complete decentralization.