ETH is About 15% Below the Buying Zone

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Ethereum price is still under pressure as investors react to the relatively strong American inflation data that were published on Thursday and as competition rises. ETH is trading at $2,437, which is about 15% below the highest point this month.

What happened: Ethereum and other digital currencies are on edge after the relatively strong economic numbers published by the United States on Thursday. The data showed that the American consumer price index rose at the fastest pace in almost 13 years in May.

In the same period, core consumer inflation rose at the fastest level since 1992. To be fair, the year-on-year numbers were from a low base considering that consumer prices dipped sharply in the previous month. Still, these numbers point to potential tightening earlier than expected considering that the labour market is still tightening. This is an important point for Ethereum price because higher interest rates tends to be negative for riskier assets.

Ether is also retreating as competition increases. The blockchain network is facing substantial competition from other fast-growing platforms like Solana, Polkadot, and Kusama that are relatively cheaper and faster. While Ethereum has a strong market share, it could lose some market share as the other networks grow.

Ethereum price prediction

The four-hour chart shows that the ETH price has struggled lately. Most importantly, it has struggled to move above the important resistance at $2,900, as shown in green. The price is also slightly above the 23.6% Fibonacci retracement level. It is also slightly below the 25-day and 50-day moving averages. 

Therefore, in my view, the coin will remain under pressure so long as it is below the resistance zone shown below. Any break above that level will see it push higher to the resistance at $3,365, which is at the 61.8% retracement level.

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ETH price chart

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