Ethereum Follows Bitcoin in Crypto Market Downslide

Ethereum (ETH) has fallen 2.03% from yesterday as the cryptocurrency market declines today. Bitcoin (BTC) is down as well by 2.14%.

On Monday, Ethereum was up, climbing sharply in what looked like the beginnings of a bullish trend. The coin promptly dipped before Monday evening, and the coin is now down to $2,881 (ETH/USD).

Trade volume for the crypto token has fallen as well, down just 2% from the previous day, as investors wait and see what the economic data will look like coming out of the CPI reports.

That report is scheduled for later this week and could offer key insights into where inflation might be headed. Expectations are that US CPI will increase. The US PPI and Core PPI reports were released today. They showed hotter than expected inflation data, with PPI up by 0.5%, higher than the expected 0.2%. For the year, PPI is also up, by 2.2%, which is in line with expectations.

If inflation data continues to show increasing rates, then the Federal Reserve is likely to postpone interest rate cuts further, perhaps holding them off until next year and keeping a hawkish rate policy for the meanwhile.

Where Is Ethereum Headed?

The catalyst for Ethereum’s decline right now is likely the inflation update, and that will probably only get worse as the week progresses. Most analysts anticipate that US CPI data will show increased inflation as well, which should cause a further decline in the crypto market.

Ethereum may drop from its current level to below $2,800 for a short period of time, but it should recover in the next week or two. We may see Ethereum reach $3,0000 by June if it manages to stay resilient. Those who have invested in Ethereum will want to hold on and wait for a price increase before selling their tokens.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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