Ethereum Price Rises 50% While Bitcoin, Solana, Dogecoin Grow!

Ethereum has gained more than 24% over the past 8 hours, continuing its upward trend on Tuesday, fueled by a bullish inflation report and other positive signs that have reignited investor appetite for crypto and riskier assets. The second-largest cryptocurrency by market cap once broke through the $2.700 barrier before falling back slightly below that level. Still, the coin is up an impressive 51% over the past seven days.

In the weeks leading up to this surge, Ethereum had plateaued around $1.700, but started to climb again after the successful Pectra upgrade. This upgrade significantly increased the speed and efficiency of the Ethereum network. Additionally, the recent trade conflicts seem to have temporarily faded into the background, contributing to a positive climate for crypto.

The currency’s recent rise coincided with the release of the consumer price index for April, a key measure of inflation, which held steady at just 0,2%. This came as a surprise to many analysts, who had expected a larger rate of increase. Annual inflation rose to 2,3%, close to the US central bank’s 2% target, which could allow for an easing of monetary policy.

This optimism in the market is further reinforced by the positive response to the equipment now available for trading cryptocurrencies. Other altcoins also saw a rise, such as Solana (SOL), which rose more than 24% in the past 5 hours, while meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) rose almost 4% each. Bitcoin, the largest digital asset, recently traded above $104.200, up 1,4% this week.

In the equity markets, we see two of the three major indices closing in the green. The tech-focused Nasdaq and the S&P 500 rose by 1,6% and 0,7% respectively. The markets seem to be reacting positively to the good inflation news in the US, which could lead to a lower interest rate by the Federal Reserve.

My assessment is that Ethereum has a lot of room to move higher, especially now that other risk assets like stocks are also making a rapid recovery. In the market, we see that $2.800 has the most gamma exposure for dealers, which could indicate a resistance zone from options trading. However, the current price action suggests that the market was not really prepared for this sharp rally in Ethereum. My feeling is that there are no obstacles that will stop Ethereum from moving higher, provided we break $2.800.

Frequently Asked Questions

What Caused Ethereum's Price to Rise?
The surge in Ethereum price was mainly driven by the successful Pectra upgrade, a favorable inflation report, and renewed investor interest in crypto and riskier assets.

How does Ethereum's recent growth compare to other cryptocurrencies?
Ethereum has seen an impressive 51% growth over the past week, while other altcoins such as Solana, Dogecoin, and Shiba Inu are also seeing gains but at a less dramatic rate.

What is the outlook for Ethereum if it breaks the $2.800 resistance?
If Ethereum manages to break through $2.800, there are few reasons why the coin cannot continue to rise. The current market does not seem extremely positioned for this rise, which increases the possibility for further growth.