Ethereum Slides 3% Amid CPI Data Release

CPI increase triggered fears of rate hikes, and Ethereum fell by 3%. Market uncertainty led to ETF outflows as investors looked for alternatives.

Consumer Price Index data showed a slight increase in inflation, which triggered a 3% drop in Ethereum price. Investors sold off their holdings as ETH price faced resistance at the $2,300 mark.

Bitcoin and Ethereum ETFs experienced significant outflows, reflecting investor caution in the face of ongoing market uncertainty.

Further selling pressure on Ethereum could lead to a 12% price pump, targeting the $2,720 resistance level. A bullish breakout would be signaled by a strong rebound from the key $2,350 support, supported by rising RSI and buying interest.

CPI Data Sparks Slight Inflation Rise, ETH Drops 3%

Fresh data from the Consumer Price Index showed a 2.4% increase in inflation, marking a 0.1% rise Year on Year (YoY). However, this news brought about a 3% drop in Ethereum price, as investors reacted to the inflation data.

As inflation rose slightly, investors grew concerned about the possibility of increasing interest rates to cool the already bearish crypto market. This concern led to a sell-off among investors, impacting the price of Ether.

After hitting the $2,300 mark, Ethereum price faced resistance and began to slide. Investors kept a close watch on the price movements and adjusted their strategies accordingly.

Bitcoin, Ethereum ETFs See Major Outflows Amid Ongoing Market Uncertainty

Recent data from Lookonchain showed negative netflows for both Bitcoin and Ethereum ETFs, indicating持续性 selling pressure. Among Bitcoin ETFs, a significant net outflow of 983 BTC was observed, amounting to $59.62 million, with 729 BTC flowing out of ARK21Shares alone.

This data point highlighted a持续性 selling trend among investors,尤其是在Bitcoin ETFs，反映了市场的不确定性和投资者重新定位的影响。

The outflows continued in Ethereum ETFs as well, with a total of 253 ETH flowing out, valued at approximately $598,000. Out of these outflows, the largest was recorded by Grayscale's Ethereum Trust, which saw 112 ETH move out, valued at $265.5K.

Ethereum Faces Further Sell-Off as Price Tests Key Support

Following the release of CPI data, Ethereum experienced further selling pressure. At the time of writing, ETH price is trading at $2,363 and is testing the crucial support level at $2,350.

If the price manages to rebound strongly from this support, along with a rising RSI, it could signal a strong recovery. Moreover, if the RSI crosses above 50, it would indicate growing buying interest.

In such a scenario, a 12% price pump is possible for Ethereum, targeting the resistance at $2,720. This target is supported by previous price action at this level.