Ethereum price forms bearish flag ahead of a pivotal week

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  • Ethereum price has formed a bearish flag pattern on the four-hours chart.

  • The next major catalysts will be the Fed statement, NFP data and consumer inflation numbers.

  • ETH could decline further towards the next support at $1,500.

Ethereum worth The past few days have been in a consolidation phase as investors gear up for its pivotal moment. ETH was trading at $1,566, where it has been for the past few days. The price is well below the year-to-date high of $1,747.

major market events

The next two weeks will be crucial for the future of cryptocurrencies and other financial assets such as stocks and bonds. This is because of the major events that will happen from a macro perspective. On Tuesday, Jerome Powell, chairman of the Federal Reserve, will testify before Congress, where he is expected to make the case for more rate hikes to quell high inflation.

Other important data will emerge on Friday, when the US publishes the latest non-farm payrolls (NFP) data. Economists expect the data to show the economy added more than 200k jobs in February. This report will be significant considering that many investors were surprised last time the economy added more than 500k jobs.

Therefore, a strong jobs report means the Fed has more room to hike interest rates. This would indicate that employers are still adding jobs, which is working well for the economy.

other catalysts for Ethereum The prices will be the Consumer Price Index (CPI) data set for the next week. Economists expect the data to show consumer prices remain elevated, even as they eased below 6%.

Overall, these numbers will indicate what the Fed needs to do going forward. Signs of more bullishness would mean that the recent ETH price rally has fizzled out and it could be on its way to retesting its 2022 lows.

ETH price will also react to the upcoming Shanghai upgrade and the ongoing collapse of Silvergate Capital. Silvergate is a company that provides banking solutions for most crypto companies such as FTX.

Ethereum Price Prediction

The 4H chart is not looking good for ETH price. For one, the coin has formed a bearish flag pattern, which is usually a bearish signal. It declined below the 25-day and 50-day moving averages while the relative strength index (RSI) turned sideways. Earlier, Ethereum found a strong resistance near $1,700.

Therefore, I am of the view that Ethereum is likely to continue declining as sellers target key support at $1,500 followed by $1,436.

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