The crypto market has seen a shift in general sentiment since 9 August. This is being credited to the release of United States CPI news which will be panned out later on 10 August.
There are expectations among analysts that inflation has already peaked in June, with the fall in gas prices and supply-chain issues. A survey by the New York Federal Reserve this week indicated positive sentiment among consumers since June.
According to CNBC, consumers expected inflation to run at a 6.2% pace over the next year and a 3.2% annual rate for the next three years.
This is a major drop from the corresponding 6.8% and 3.6% results in the June survey.
Time to back down?
In the mix of it all is the altcoin heavyweight, Ethereum which saw its price fall by 5.13% since 9 August. ETH prices, at press time stood at $1,687 after breaking the $1,700 mark according to CoinMarketCap.
There is a general consensus in the market that the drastic change in sentiment is expected to change soon.
That being said, according to Glassnode, open interest in perpetual futures contracts has reached a new low on Kraken.
It originally hit a 19-month low of $12.09 million on August 10, compared to the previous low on August 7.
A declining interest in futures contracts can mean short-term bettors are not optimistic about the general market conditions.
However, they usually change their actions quickly with a general sense of humor.
Rising from beneath
However, there are other indicators that suggest growing optimism in the Ethereum community. A recent update claimed that the number of exchange withdrawals (7d MA) has reached an 18-month low of 1,810.2.
Pulling out holdings from exchanges is usually seen as a bullish signal for the asset.
Additionally, the latest CoinShares report found that institutions have accumulated ETH-based funds for seven weeks straight.
The major reason for this interest is attributed to the merge scheduled for September.
Asset manager Grayscale has also announced that it could soon initiate staking for investors. However, the major obstruction is the risks that are associated with staking-related rewards.
Well, anticipation of inflation news may have dampened short-term sentiment for Ethereum investors.
But there is still Merge to look forward to since it promises greater revenue for the investors.
