Ethereum (ETH), the second-largest cryptocurrency, has experienced a significant surge in its value, catching the attention of investors worldwide.

This remarkable upward trend can be attributed to a combination of factors, including positive market sentiment, economic reports driving interest-rate expectations, and developments in the cryptocurrency market such as Interactive Brokers’ decision to offer crypto trading.

US Economic Data and Its Impact on Cryptocurrency Prices

On the US front, the US dollar lost traction and edged lower due to weak reports on consumer inflation and retail sales. This has made investors hopeful about possible interest rate cuts by the Federal Reserve.

This optimism has boosted Ethereum’s price, as investors seek alternative assets like cryptocurrencies amid worries about inflation and currency devaluation. On the data front, US headline CPI rose 0.3% in April, slightly below expectations and March’s figure. Year-over-year CPI met expectations with a 3.4% rise, lower than the previous month.

Excluding Food and Energy, CPI also rose 0.3% in April, in line with expectations. US Retail Sales in April fell short of expectations, showing no growth compared to the estimated 0.4% and a decrease from March.

This disappointing data might push Fed officials to consider interest rate cuts, signalling potential economic concerns. Hence, the current data indicating disinflation in CPI and sluggish Retail Sales could prompt the Fed to consider lowering interest rates soon.

This move might weaken the US Dollar (USD) but could drive up prices for Bitcoin (BTC) and Ethereum (ETH).

Interactive Brokers U.K. Boosts Ethereum Accessibility and Liquidity

Another factor aiding the crypto market’s recovery is Interactive Brokers U.K.’s decision to introduce cryptocurrency trading. This enhances Ethereum’s accessibility and market liquidity. With more investors able to trade Ethereum through this platform, demand for the cryptocurrency is poised to surge, potentially boosting its price.

Regulatory Hurdles Dampen Ethereum’s ETF Prospects and Price Outlook

Despite increasing interest in Ethereum exchange-traded funds (ETFs), significant regulatory obstacles remain. The Securities and Exchange Commission (SEC) ‘s recent classification of Ethereum as a security has dampened hopes for ETF approvals.

Analysts believe the chances of SEC approval are minimal. This regulatory uncertainty has clouded Ethereum’s price forecast as investors wrestle with the effects of delayed ETF approvals and regulatory scrutiny.

Therefore, the SEC’s classification of Ethereum as a security has lowered prospects for ETF approvals, creating uncertainty. This regulatory hurdle has weighed on Ethereum’s price outlook as investors grapple with the implications.

Ethereum Price Forecast

Ethereum is trading at $3009.73, down 0.78%. The 4-hour chart highlights key price levels, starting with a pivot point at $3035.94. Immediate resistance levels are at $3126.86, $3190.90, and $3248.34.

On the support side, key levels are at $2957.12, $2860.94, and $2786.93.Technical indicators show mixed signals. The Relative Strength Index (RSI) is at 60, indicating moderate bullish momentum.

The 50-day Exponential Moving Average (EMA) is at $2968.62, suggesting that the current price remains above this average, supporting the bullish perspective.

In conclusion, Ethereum’s outlook turns bearish if the price falls below the pivot point at $3035.94. Conversely, a break above this level could enhance bullish momentum.