Ethereum price has been in consolidation mode for the past few days as macroeconomic concerns send investors into conservation mode. At the time of writing, Ethereum was trading slightly higher at $1,832.32. ETH’s total market cap, as well as its total volume, have increased over the past 24 hours. It currently has a market capitalization of $220 billion.

Fundamental Analysis

Ethereum price has been moving sideways for the past few days, in tandem with the global cryptocurrency market as investors shift their focus to US debt ceiling talks and Fed’s monetary policy outlook. The global crypto market cap has increased by 1.30% over the last day to $1.13 trillion, while the total crypto market volume fell by more than 7%.

The cryptocurrency market has been moving sideways for the past few days characterized by a mix of bullish and bearish trading sessions. The recent trend in the cryptocurrency market has been amid the uncertainty around the outcome of the US debt ceiling talks and the prospect of a US government default. With less than a week to default, investors have shifted to conservation mode, especially around risk assets such as cryptocurrencies.

Potential interest rate hikes by the US Federal Reserve have also been weighing on the markets. Traders have ramped up bets of an interest rate hike in the Fed’s next meeting in June after several policymakers sounded their support. According to a gauge released on Friday, inflation rates remained elevated in April, reinforcing the chances that the Fed could hike interest rates.

Data from the Bureau of Economic Analysis shows that the Personal Consumption Expenditure (PCE) price index rose 0.4% in April, beating analysts’ expectations of a 0.3% increase. On an annual basis, the gauge rose 4.7%, 0.1% higher than analysts’ forecast. Despite the higher inflation rate, consumer spending jumped 0.8% over the month, while personal income increased by 0.4%.

Ethereum Price Outlook

Ethereum price has been consolidating for the past few days amid increased market volatility in the crypto sector. Even so, the coin has made significant improvement in the past 24 hours, jumping past the crucial level of $1,800. On the 4-hour chart, the asset has managed to move above the 25-day and 50-day exponential moving averages, while its Relative Strength Index (RSI) moved higher to 60.

Therefore, the Ethereum price is likely to continue climbing higher in the ensuing sessions as buyers eye the next resistance level of $1,900. However, we cannot rule out a slip below the important support level of $1,769.05 which will invalidate the cautiously bullish thesis.

ETH Price Chart