ETHUSD keeps feeling the selling pressure, hovering around $1,900 after failing to consolidate above the psychologically important $2,000 level.
The US inflation report for July has been the highlight of the week. On a monthly basis, the Consumer Price Index (CPI) rose by a modest 0.1%. The annual reading, in turn, declined from June’s 3.5% to 3.4%. The core year-on-year figure also fell to 2.5%. Add to this the latest labor market data, which showed a sudden drop in employment, and concerns over a September rate hike by the Federal Reserve (Fed) begin to fade. Only 40% of investors now expect such a move from the US regulator next month—down from 55% just a week earlier. Under these conditions, cryptocurrencies tend to benefit: dollar-denominated assets become less attractive, prompting investors to consider riskier options. However, note that these positive developments may already be baked in ETHUSD.
From a technical perspective, the $2,000 level remains a critical resistance. Bulls have recently attempted to breach this threshold but failed to settle above it. As long as prices stay beneath this line, the risk of further correction stays elevated, with the nearest downside target at the $1,750 support level.
The ultimate recommendation is to sell ETHUSD at the current price ($1,900), aiming for $1,750 within a month. To mitigate the risk of adverse market movements, place a Stop Loss order at $2,000.
This content is for informational purposes only and is not intended to be investing advice.
