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Ethereum Price Forecast Ahead of US Consumer Price Data

Historically, there has been a close correlation between Bitcoin and Ethereum. Therefore, the ETH price rises when there is strong demand for BTC. The price increase is also due to the rising hash rates. This means that there are no more miners. A few months ago, the hash rate declined after China tightened its crackdown on mining.

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The price of Ethereum has found strong resistance ahead of Wednesday’s scheduled release of US Consumer Price Index (CPI) data. The ETH token is currently priced at $3,460, down about 5.78% from this month’s high. Its total market cap has fallen to just over $407 billion in the process.

If you want to find more details about the price of Ethereum and the correlation between Bitcoin and Ethereum, download for free our companion app. The Born2Invest business news mobile app keeps its readers up to date with the latest market updates.

Divergence Between Ethereum and Bitcoin

Historically, there has been a close correlation between Bitcoin and Ethereum. Therefore, the ETH price rises when there is strong demand for BTC.

However, this correlation could not be observed this week. On Monday, October 11th, the price of Bitcoin jumped to a five-month high of $57,000. During the same period, Ethereum remained under pressure below the key resistance level of $35,000. This divergence also occurred between Bitcoin and other altcoins.

This is due to the factors driving Bitcoin. In recent weeks, Bitcoin has jumped because the U.S. Securities and Exchange Commission (SEC) may approve a Bitcoin exchange-traded fund (ETF). If it does, more companies may apply for Ethereum ETF approval after that.

The price increase is also due to the rising hash rates. This means that there are no more miners. A few months ago, the hash rate declined after China tightened its crackdown on mining.

Consumer price data also plays a role

The next important catalyst for the ETH price will be the latest US consumer inflation data. They should not be released until Wednesday. It is likely that the data will show that consumer prices in the US remained at a high level in September. Therefore, there is a probability that the US Federal Reserve will start tightening monetary policy sooner than expected.

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At the same time, the Ethereum price is supported by the DeFI and NFT sectors. For example, the total value of locked tokens on Ethereum’s DeFi platforms has risen to over $140 billion. Activity in the NFT industry also continues to increase.

Ethereum Price Forecast

From the four-hour chart, it can be seen that Ethereum has been struggling in recent days. A closer look shows that this price movement is happening intentionally. For one, it happened when the price rose to a high of $3,675. This was notable because it was also the September 16th price.

The price formed a kind of cup-and-handle pattern. This is also part of the handle formation, which means that ETH will recover soon.

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(Featured image by Ivan Radi CC BY 2.0 via Flickr)

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Suzanne Mitchell juggles the busy life of a full-time mom and entrepreneur while also being a writer-at-large for several business publications. Her work mostly covers the financial sector, including traditional and alternative investing. She shares reports and analyses on the real estate, fintech and cryptocurrency markets. She also likes to write about the health and biotech industry, in particular its intersection with clean water and cannabis. It is one of her goals to always share things of interest to women who want to make their mark in the world.