ISM PMI Data Sparks Inflation Fears and Ethereum Watchers

The US ISM PMI data has been released, showing a reading of 54.5, which is above 52 but below expectations. This marks the ninth consecutive print above 52, keeping the US economy in expansion territory and putting pressure on the Federal Reserve.

Strong economic data isn't necessarily comfortable for the Fed, as it can raise inflation expectations and complicate the rate path. The Fed faces an unpleasant choice: hold rates and wait or hike and risk hurting growth.

Ethereum's price is currently holding at around $2,695, but some analysts believe it could be influenced by the ISM PMI data. AshCrypto pointed out that in 2017 and 2020-2021, Ethereum rallied significantly after the ISM PMI broke above 56.

The setup remains incomplete, and if the ISM reading moves higher towards 60 in coming months, it could indicate another major Ethereum cycle during 2027 to 2028. However, for now, the focus is on the 54.5 reading and the 56 level that analysts are watching.