The recent positive US CPI data for May, which showed a decrease in inflation, has sparked a strong recovery in major cryptocurrency assets, particularly Ethereum. ETH has seen a rise in buying activity and an increase in on-chain metrics.
ETH is currently facing immediate resistance at $3,660 and support at $3,430. If buying momentum continues, there is potential for the price to surge towards $3,740 and $4,000.
The release of the May US Consumer Price Index (CPI) data, which revealed a slight decrease in inflation from 3.4% in April to 3.3% in May, has had a positive impact on the cryptocurrency market. As Bitcoin’s price approaches $70,000, Ethereum has also seen increased buying activity and on-chain metrics.
The softer CPI report has bolstered support levels for cryptocurrencies, with BTC surging towards $70,000 and ETH testing buyers’ patience at $3,700. Whale activity on the Ethereum network has surged, with transactions worth over $13 billion taking place in the past 48 hours.
Despite Ethereum’s dominance in the layer 1 sector, Solana is making progress in on-chain activity. There has been a 9% decrease in Ethereum’s NFT volume over the past week, potentially signaling bearish trends for ETH despite its recent price rebound.
Currently, Ethereum is on an upward trend but is facing resistance at the $3,660 level. If buying momentum continues, there is a chance of a surge towards $3,740 and potentially reaching the $4,000 milestone. Bulls have successfully turned the $3,430 level into a support zone, increasing the likelihood of further price increases.
