Ethereum, the second-largest crypto in the world, has crossed $4,700 today, approaching the psychological $5,000 mark.
ETH back in price discovery
The Ethereum price is up about 4 percent today, just reaching a new All Time High of $4,762. The price increase of ETH occurs at the same time as the price increase of Bitcoin. The price of BTC is again above $66,000. This shows the strong correlation between the coins.
Inflationary pressures return
Wall Street Economists expected that the US consumer price index is expected to rise to 5.8% in October ahead of the Bureau of Labor Statistics inflation report on Wednesday. That would be a step above the 5.4% rate seen in September, the highest since 1990.
The latest inflation figures came after the Federal Reserve’s policy meeting last week. The US Central Bank beclosed its $120 billion per month asset purchase program. This was done in order to limit the persistently rising consumer prices and bring them back to the target of 2%.
But Fed officials stuck to their long-term view that inflation will pass on its own. They eventually decided to keep their benchmark interest rates close to zero. That is extremely bullish news for Bitcoin. This is because investors buy crypto as a hedge against inflation.
Technical Analysis Ethereum
If we look at the Ethereum chart, we see a clear upward trend. ETH is in a bullish channel, showing that the price may soon approach the $5,000 level.
Bernhard Rzymelka, global markets managing director at Goldman Sachs, expects Ethereum to hit $8,000 by December 2021.
