Categories: Market

3 factors that can help the ETH price rise 100% in the fourth quarter

Thanks to technical and basic support, ETH has the potential to double its value in the coming months.

The price of ETH rose more than 9% on October 1, hitting nearly $ 3,300 for the first time in 10 days. The move up mainly came after all of the top cryptocurrencies rebounded, including Bitcoin, which rose 9.5% to hit a 10-day high of $ 48,000.

ETH 4-Hour Price Chart | Source: Tradingview

BILLIONETH-Bitcoin correlation with rising US inflation

The October 1 explosion in the cryptocurrency market coincided with the release of the U.S. Department of Commerce report on consumer spending.

data shows The US consumer price index (CPI), the Federal Reserve’s measure of inflation, rose 0.3 percent in August and 3.6 percent year-over-year. This took core inflation to a 30-year high.

Speculators tend to see Bitcoin as a hedge against inflation. This explains the leading cryptocurrency’s recent response to higher consumer prices in the United States.

Meanwhile, the average 30-day correlation of ETH with BTC is close to 0.89, according to data from CryptoWatch, which means that ETH is getting close to its big brother.

BTC price chart and ETH daily newspaper | Source: TradingView

One opinion poll from the University of Michigan, conducted August 25 through September 27, shows US consumers expect long-term inflation to rise to 3%, its highest level in a decade.

This comment seems to contradict Fed chief Jerome Powell’s view. He described rising inflation as “temporary” for months, but admitted during a recent Senate hearing that higher consumer prices could last at least until next year.

As a result, inflationary pressures have given crypto bulls a reason to consider Bitcoin as a last resort, with MicroStrategy CEO Michael Saylor suggest Companies are converting their cash-based treasury to BTC.

MicroStrategy holds approximately 0.5% of the total circulating bitcoin supply, which is currently valued at over $ 6 billion.

S.queeze ndeliver

The London hard fork upgrade of the Ethereum network took place successfully on August 5th, further improving the bullish outlook for ETH due to the classic law of supply and demand.

The upgrade introduces the improved EIP-1559 protocol, which is starting to burn off some of the network charges known as base charges. So far, EIP-1559 has permanently removed 410,404 ETH (about $ 1.32 billion) from its active offering, according to Watch the Burn.

Ethereum is also preparing to switch the consensus mechanism from PoW to PoS. As a result, the protocol introduced a staking pool that allows users to earn rewards and increase their ETH holdings if they tie 32 ETH to the official PoS smart contract within a certain period of time.

So far, the ETH amount deposited in the Ethereum 2.0 staking contract has increased from around 11,500 in November 2020 to 7.82 million ETH today. As such, the transition has temporarily effectively withdrawn 7.82 million ETH from circulation.

Entire ETH involved in the Ethereum 2.0 smart contract | Source: CryptoQuant

On the other hand, the total amount of ETH held on all exchanges fell to a record low. Data from CryptoQuant shows exchanges currently hold just 18.1 million, compared to 23.73 million ETH a year ago.

Reserve ETH on all exchanges | Source: CryptoQuant

A decline in ETH reserves suggests that traders would rather sell HODL coins than sell them for other assets, as there could be a supply bottleneck for investors who want to participate in the ETH market, making ETH more valuable power.

Lark Davis was tweets:

“With EIP 1559, ETH supply is expected to peak around 120 million and then decrease as demand increases. That pretty sure means that prices will go up. “

Cup and handle model

The combination of lower supply and higher demand acts as bullish support for ETH. Meanwhile, the cup-and-grip pattern on ETH’s longer time frame chart provides further evidence of a bullish breakout.

The cup and handle are a bullish continuation pattern that includes a round bottom and descending channel structure, as shown in the graphic below. The profit target of the structure is usually equal to the maximum height of the cup.

Daily ETH price chart with Cup and handle model | Source: TradingView

Given the cup resistance near $ 4,000, a breakout from there could bring ETH to over $ 6,000, almost double the current price.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Minh Anh

According to Cointelegraph

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

59 minutes ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

1 hour ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

2 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

3 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

4 hours ago

Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns 

Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…

6 hours ago

This website uses cookies.