ETH returns to pricing when it approaches $ 5,000
The Ethereum blockchain’s native ETH asset hit a new ATH on Nov 8, thanks to a positive uptrend in leading cryptocurrencies ahead of this week’s top US inflation report.
ETH price rose to $ 4,782 for the first time in history when Bitcoin retook the $ 66,000 mark, showing a strong positive correlation between the top two digital stocks.
Correlation table for cryptocurrencies (based on data collected over the past 24 hours) | Source: Crypto Watch
Inflationary pressures are back
Wall Street Economists suspect The US consumer price index is set to climb to 5.8% in October ahead of the Bureau of Labor Statistics inflation report on Wednesday. So if the forecast is correct, the index will rise by one level since 1990.
In addition, the consensus projections observed by Bloomberg show US consumer prices rise 0.6 percent in September-October, compared to 0.4 percent in August-May.
US headline inflation | Source: Bloomberg, Bureau of Labor Statistics
The latest inflation figures come after the Federal Reserve’s (Fed) monetary policy meeting last week. The US Federal Reserve has decided to discontinue its $ 120 billion bond purchase program.
However, Fed officials maintained their long-term view that inflation was “transitory” and eventually decided to keep the benchmark interest rate near zero. This helped Bitcoin maintain its momentum thanks to high yields during a period of extremely low interest rates and large bond purchases .
Technical analysis of the ETH price
The ETH technical indicators suggest a bullish outlook towards the dominant ascending trendline of channel resistance – near the USD 4,800-5,000 region – as shown in the chart below.
Daily ETH price chart and ascending channel configuration | Source: TradingView
In addition, a sustained bull outbreak has brought ETH’s profit target close to $ 4,800.
Bernhard Rzymelka, Managing Director Global Markets at Goldman Sachs, suspect ETH will hit $ 8,000 in December 2021 if the token continues to move in line with inflation expectations.
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According to Cointelegraph