Ethereum price is trading lower amid the ongoing talks over the probability of a digital dollar. The US dollar is the preferred currency for international transactions. However, the heightened popularity of cryptocurrencies like Bitcoin and Ethereum has challenged this trend.
During his testimony before the US Congress, Fed’s Chair Jerome Powell hinted at a digital dollar. However, he indicated that he is yet to make up his mind on whether its benefits outweigh the drawbacks. Such a project would be a major headwind in the crypto industry. In the ensuing sessions, Ethereum price will also be reacting to the US retail sales.
ETHUSD technical outlook
Ethereum price remains under pressure as the bulls lack enough momentum to push past Tuesday’s high of 2,049.15. After hitting an intraday high of 2,04056, the cryptocurrency dropped to a low of 1,883.71. At the time of writing, it was down by 3.74% at 1,919.48. On a two-hour chart, it remains below the five and ten-week exponential moving averages.
In the near term, Ethereum price is likely to remain below the psychological level of 2,000 as the bulls gather enough momentum to push it past that crucial resistance level. A move below the current support level at 1,864.37 will probably lower it to the psychological level of 1,800.
As a reaction to the US inflation data, the bears may manage to retest the prior support level at 1,716.12. However, a move above 2,000 will invalidate this thesis.
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