Ethereum Price Dips Below $1.8K Amid Macroeconomic Headwinds

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Ethereum price was in the red on Friday, shedding some of the gains made in the past week. At the time of writing, Ethereum was trading 2.24% lower at $1,763.05. The lead altcoin has added more than 12% in the past week and 47.40% in the year to date. Its total market cap remains 1.60% higher for the day at $212 billion.

Fundamentals

Ethereum price has recorded significant gains over the past week on the back of positive market sentiment and Bitcoin’s brief interaction with the important level of $35,000. The crypto market has been bullish over the past week amid BlackRock’s EFT buzz and an increase in risk appetite. The Crypto Fear and Greed Index, which measures the key emotions driving the crypto market, is at a Greed level of 71, suggesting an increase in buying pressure.

The crypto market has been on a bullish rally in the past week as BlackRock’s closely watched spot bitcoin EFT appeared on a list maintained by a Nasdaq-operated clearing house for EFTs, the Depository Trust and Clearing Corporation. The move by the DTCC raised hopes that the US Securities and Exchange Commission (SEC) will approve the trading of the highly anticipated bitcoin EFT. BlackRock’s EFT application filed earlier in June is still pending approval from the SEC.

Bitcoin, the largest cryptocurrency by market cap, briefly topped $35,000, its highest level since May 2022, on the back of BlackRock’s EFT listing. BTC’s jump to this level pushed crypto prices of most altcoins, including Ethereum, Solana, Cardano, and Dogecoin, higher.

Even so, macroeconomic headwinds have continued to weigh on cryptocurrency prices. The US dollar rose to a near 1-week high on Friday against several major currencies as investors’ appetite for risk assets faded following a series of lackluster corporate results that raised worries about the economic outlook.

Additionally, investors have been digesting the latest personal consumption expenditures data for September. Core PCE, the Fed’s favorite inflation gauge, inched 0.3% higher in September and 3.7% year on year, in line with analysts’ estimates. While markets are widely anticipating a pause in interest rates in November, investors are closely watching for hints from the US Federal Reserve about the monetary policy path.

Ethereum Price Outlook

The daily chart hints at exhaustion in Ethereum ‘s price recent rally past $1,800. The altcoin briefly jumped to $1,865 earlier in the week, its highest level since August. Ethereum remains above the 50-day and 200-day exponential moving averages. Its Relative Strength Index, as well as the Moving Average Convergence Divergence Indicator, signal a bullish outlook.

As such, the Ethereum price is likely to continue trading above the $1,700 level in the ensuing sessions as it struggles to recover above the important resistance level of $1,800. A breach above this level might lead to subsequent gains towards $1,865 and $1,900. However, a drop below $1,700 will push the price lower to the immediate support at the 50-day EMA, invalidating the bullish thesis.