ISM Streak Fuels Ethereum Watch for Breakout

The US ISM PMI reading of 54.5 has raised questions about the Federal Reserve's rate path, as strong economic data can complicate inflation expectations.

The latest ISM PMI came slightly below the forecasted 54.8 and previous reading of 54.6, but still remains above 52, extending the expansion streak.

This creates a tricky backdrop for the Fed, as holding rates could push yields higher if markets believe inflation isn't disappearing soon, while raising rates could weigh on economic growth.

Ethereum is watching the 56 level closely, as analyst 'AshCrypto' points out that in 2017 and 2020-2021, ISM breaking above this threshold was followed by significant Ethereum price increases from $10 to $1,400 and $88 to $4,800 respectively.