Ethereum’s native blockchain asset Ether (ETH) hit a new high on November 8, supported by a rally in major cryptocurrencies ahead of a key US inflation report this week.
ETH price increased 3.30% in the last 24 hours to $ 4,770 for the first time in its history, as Bitcoin (BTC) hit $ 66,000 again, demonstrating the strong positive correlation between the two digital assets.
Inflationary pressure returns
Wall Street economists anticipated the U.S. consumer price index to rise to 5.8% in October ahead of Wednesday’s Bureau of Labor Statistics inflation report.. That would be an increase from the 5.4% pace recorded in September, the highest since 1990.
Additionally, consensus forecasts observed by Bloomberg suggested that US consumer prices rose 0.6% between September and October, down from 0.4% between August and September.
The latest inflation figures came after the Federal Reserve’s policy meeting last week. The US central bank decided to roll back its $ 120 billion a month asset purchase program to control steadily rising consumer prices and bring them down to their planned target of 2%.
But Fed officials stood firm in their long-term view that inflation is “transitory” in nature and ultimately decided to keep their benchmark interest rates close to zero.. That kept Bitcoin’s overall bullish momentum intact, given its high returns in the period of ultra-low interest rates and massive bond buying.
ETH pricing techniques
Ether technical data supported a bullish outlook, with the price trend pointing to a rise towards the resistance trend line of its predominant ascending channel, near the $ 4,800 to $ 5,000 area, as shown in the graph below.
Furthermore, the ongoing bull flag breakout setup also shifted Ether’s profit target to close to $ 4,800.
Bernhard Rzymelka, Managing Director of Global Markets at Goldman Sachs, anticipates that Ether will hit $ 8,000 by December 2021 if the token continues to follow inflation expectations.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you need to do your own research when making a decision.
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