The Ethereum price pulled back on Thursday after closing higher on Wednesday. At the time of writing, the coin was trading 2.03% lower at $3096.41. It is trading nearly 26% below its highest level this year in May. Its current total market capitalization stands at $363.6 billion.
Ethereum was not the only coin that declined on Thursday. Bitcoin, the lead cryptocurrency in the world, was also in the red on Thursday. Due to its correlation with other cryptocurrencies, most coins dived.
Bitcoin has been in the red for three consecutive days, snapping from Monday’s 5.61% gain. However, it has been consolidating above the $42,000 level. With the slowdown in inflation, most cryptocurrencies are expected to edge higher.
The Federal Reserve is not yet ready to hike interest rates which is a good thing for most digital currencies. According to Jerome Powell’s latest statement, the Fed will only start discussions on tapering its monetary policy once inflation reaches the 2% target and is stable.
Just like all cryptocurrencies, the Senate’s amendment to crack down on crypto tax reporting has been heavily weighing on cryptocurrencies. However, most coins went up on Wednesday after a part of the Senate showed its support for the currencies.
The Ethereum price is staged for a rally in August amid its new upgrades. The London hard fork was successfully launched a week ago pushing its price higher. The upgrade will cut down on the number of Ether mined each day hence increasing the token’s value. It will also reduce the number of tokens in circulation by introducing burns.
Ethereum Price Prediction
The Ethereum price has been on an upward trajectory jumping more than 240% from its lowest point this year. Ethereum jumped to an intraday high of $3239 before pulling back.
On the daily chart, it is trading above the 50 and 100-day exponential moving averages. Its Relative Strength Index (RSI) is strong at 70, however, it is overbought.
Bulls will need to gather momentum to push the price above the $3,200 level. A move below the $3,000 level will invalidate the bearish view.