Ethereum Classic (ETC) price has eased after its surge earlier on Monday’s session. The rise is a reaction to the lower-than-expected US inflation data, which has boosted investors’ risk appetite.
With the exclusion of the volatile energy and food components, the US personal consumption expenditures (PCE) index rose by 0.5% compared to 0.7% in April. On a year-on-year basis, the core PCE price index rose by 3.4%, which is the highest surge since April 1992. Notably, the PCE price index is among Fed’s favorite measures of inflation.
This week, Ethereum Classic and the entire crypto market will be eyeing the nonfarm payroll data scheduled for release on Friday. Analysts expect a reading of 675,000. Depending on the released data, the crypto market may begin to price in a probable hike in interest rates for 2022. Higher rates are likely to create a bearish environment for cryptocurrencies.
Ethereum Classic price outlook
Ethereum Classic is on a consolidation pattern after its surge earlier on Monday’s session. Earlier in the day, it rose to an intraday high of 42.79 before pulling back. On a two-hour chart, it is trading slightly above the 25 and 50-day exponential moving averages.
I expect the crypto to continue finding support along the 50-day EMA at 40.95. Below that level, the bears may retest Saturday’s low of 37.51. On the upside, the bulls will need to clear the resistance at 42.88 to gather enough momentum for its next target at Friday’s high of 45.
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ETC price chart
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