Ethereum Stuck Below $2,500 Amid Inflation Fears and Fed Hopes
Ethereum's price has been stuck below $2,500 despite strong Ethereum exchange-traded fund (ETF) inflows. On September 8, ETH traded at around $2,480 on CoinGecko, up 0.8% over the past seven days but down 1% in the past 24 hours.
The lack of direction is due to traders waiting for the US August Consumer Price Index (CPI) report on September 11, a key inflation reading before the Federal Reserve's policy meeting on September 15-16. Markets are pricing in a 60% chance of a rate hike this month following stronger US employment figures.
The jobs report added 162,000 jobs in August, with the unemployment rate remaining unchanged at 4.1%. Average hourly earnings increased 0.3% from July and 3.1% from the previous year. This pushed Treasury yields higher, adding pressure on risk assets ahead of the CPI report.
ETH has faced its own supply barrier during this wait. Price has struggled to stay above $2,500, with resistance extending through roughly $2,511 to $2,546. Sellers have continued to defend prices closer to $2,475, while buyers have accumulated around 82,000 ETH in the larger 10,000 to 100,000 ETH group.
Crypto analyst Ali Martinez reported that 116,000 ETH worth more than $300 million left exchanges between September 6 and 7, reducing the amount of Ether immediately available on trading platforms. Institutional flows have remained positive with US spot Ethereum ETFs recording $218.4 million in net inflows during the week ending September 4.
Ethereum's daily chart shows price consolidating around $2,480 after the sharp August breakout. The Directional Movement Index still favors buyers on the daily timeframe, but Chaikin Money Flow has dropped from levels above 0.20 reached after the August breakout.