Ethereum was changing hands for $1,708 and up nearly 7% on day
With expectations ahead of awaited consumer-price index (CPI) data, markets are watching for signs that inflation eased in July despite unexpectedly strong US job numbers last week.
To this end, crypto analyst and economist Alex Kruger is expressing his take on the Ethereum price action. According to the analyst, Ethereum might reach the $2K mark if pricing pressures start to show significant signs of easing. On the contrary, higher-than-expected stats might mean a weeklong drop, which will enable investors to buy the dip. This may also apply to Bitcoin and other cryptocurrencies amid a general correlation in the risk asset class.
“If the numbers warm up, think a week long downtrend makes sense, then reload the dips. $ETH 2K within two weeks if the numbers calm down. All risk assets will move equally. $ETH is my risk asset of choice for now,” he said.
According to Matt Maley, chief market strategist at Miller Tabak & Co., if inflation is lower than predicted, there may be greater liquidity due to a potential Federal Reserve pivot. If inflation is higher than projected, cryptocurrencies should decline. The U.S. inflation figures may indicate whether the Federal Reserve is willing to hike rates more quickly.
It is anticipated that the Consumer Price Index report will reveal a recession in July, which could be good news for the cryptocurrency.
$1,350 predicted in “max pain” scenario
According to Glassnode, Ethereum derivatives traders continue to make bets on the cryptocurrency in a clear direction, particularly on the impending Merge update. While upward bets reveal a $2,200 probability, even up to $5,000, the maximum pain price is around $1,350, at which the greatest number of options would expire out of the money.
As of the merge update for September 19th, there has been speculation that multiple Ethereum PoW forks will occur. To this end, Circle Internet Financial, the issuer of the crypto stablecoin USDC, stated that it will not support any offshoots of Ethereum when the blockchain network undergoes its proof-of-stake transition.
At the time of publication, Ethereum was changing hands for $1,708.
