As Bitcoin continues to hover around $19,000, the second largest cryptocurrency by market cap, Ethereum, is eventually moving towards retesting its lost range of $1,700.
Currently, Ethereum is changing hands at $1,626 after a massive gain of 7.05% in the last 24hrs. At the moment, Bitcoin is struggling to gain momentum and avoid another rejection, thus, market participants have turned Ethereum to be their saviour.
The upcoming Ethereum merger has gained both positive and negative speculations. A few market participants claim that the merger will lead to increased demand and drive the ETH price. Conversely, a few others believe that the merger will act as a mere ‘buy the rumour, sell the news kind of event.
CPI Data To Push Ethereum Price?
A ‘buy the rumour, sell the news event leads to a massive bull run but is never sustainable. If this perspective is indeed true, the ETH price would crash soon after the event comes to an end.
It’s also important to note that on the day of the merger, the US Federal Reserve is expected to disclose the Consumer Price Index (CPI) data which will also reveal the current inflation rate.
Many market experts claim that the CPI data will play an important role in market movement. Alex Kruger, a famous economist, supports this ideology and says that the data will let us know the market direction.
Further, Alex claims that if ETH is traded for the event, he would like to go long as the currency might move above $1,700 and hit a target between the $1,800 to $2,100 area.
On the other hand, in terms of Ethereum’s sustainability after the Merge, the expert asserts that it all depends on the currency’s price action capability. He believes that the merger will put the spotlight on ETH, but this is not enough for ETH to see a bull run. As per Alex, if there is a rebound seen in the equities markets after the CPI stats are released, then crypto will follow.
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