Ethereum sharply lost value following the release of high US inflation data, indicating the possibility of prolonged elevated interest rates.
Reasons for Ethereum Price Decline
Ethereum hit a low of $1,880, its weakest since March 18, after the release of US inflation data. The Personal Consumption Expenditure Index rose, indicating a potential for longer higher interest rates. This report also caused a drop in other risky assets, including major stock indices and cryptocurrencies.
Investors Hold Back
Wall Street investors remain cautious amid ongoing challenges for Ethereum. SoSoValue data shows spot Ethereum ETFs added inflows only once in March, netting $14.8 million on March 4, with cumulative assets now at $6.86 billion.
Technical Analysis of Ethereum Price
Technically, the formation of a triple-top pattern and neckline retest suggests the possibility of further decline. The risk exists of dropping to $1,537 if the resistance level at $2,131 isn't surpassed.
Investor focus remains on inflation changes and financial market regulations, which could significantly impact future Ethereum and cryptocurrency price movements.
