Ethereum\u2019s native token, Ether (ETH<\/a>), rose to three-week highs, rallying in lockstep with the broader cryptocurrency market<\/a>, as well as\u00a0stocks.\u00a0<\/p>\n On Jan. 9, ETH\u2019s price rose 2.85% to cross above $1,325 for the first time in three weeks, a key level that could pave the coin\u2019s path toward $1,350 next if its previous price performance is any indication. <\/p>\n The crypto market’s capitalization gained 2.66%, or $21.18 billion, in the same period.\u00a0<\/p>\n Investors are rushing into riskier markets on signs of cooling inflation.<\/p>\n Notably, on Jan. 6, the U.S. Labor Department\u2019s nonfarm payrolls report<\/a> showed a slowdown in wage increases, which market watchers interpreted as a sign that the Federal Reserve\u2019s hawkish policy has brought down inflation successfully.<\/p>\n Such a scenario could prompt the Fed to slow the pace of its rate hikes<\/a>, which, in turn, could prove bullish for crypto assets like Ether.<\/p>\n Inflation will continue to decline in the next few months – this will cause the fed to pause and eventually ease and the markets to roar upwards. Once the fed begins easing we will enter phase 2 of the inflation saga. People really don\u2019t seem to understand how sticky inflation is pic.twitter.com\/iFKbUWg9QA<\/a><\/p>\n \u2014 Nate O’Brien (@nateobrienn) January 9, 2023<\/a><\/p><\/blockquote>\n The market now awaits fresh data on consumer prices in the U.S. due on Jan. 12. The figures will set the tone for the Federal Open Market Committee\u2019s two-day meeting starting Jan. 31. CME data shows<\/a> a market consensus for a rate hike of 50 to 75 basis points entering February.\u00a0<\/p>\n As macro indicators turn short-term bullish for risk markets, Ether options traders have grown confident about a possible price rally in the first quarter of 2023.<\/p>\n Notably, the Ether open interest for contracts expiring on March 31 is majority bullish, with most strike targets falling inside the $3,500\u2013$4,000 range, according to data tracked by Glassnode.<\/p>\n The upside outlook receives a further boost from Jiang Zhuoer, co-founder and CEO of Bitcoin (BTC<\/a>) mining service B.TOP, who believes<\/a> Ether will permanently break out from its current bottom range anywhere between March and May 2023, citing its deflationary supply in recent months.<\/p>\n Related:\u00a0Ethereum\u2019s Shanghai upgrade could supercharge liquid staking derivatives \u2014 Here\u2019s how<\/a><\/em><\/strong><\/p>\n \u201cLooking at the data of Ethereum,\u00a0the inflation rate was 3.59% when ETH was in Proof-of-Work (POW). Bitcoin\u2019s inflation rate is 1.72%,\u201d he wrote, adding: <\/p>\n \u201cEven after the bear market, with the inactive coin burning, the ETH inflation rate is as low as 0.01%. […] From this data, it can be concluded that the ETH bull market will start in a spiral deflationary mode.\u201d<\/p><\/blockquote>\n However, the Fed will need to see a sustained decline in inflation before it puts a brake on its rate-hiking-spree, cautioned<\/a>\u00a0Edward Park, chief investment officer at London-based Brooks Macdonald.<\/p>\n $ETH<\/a>. Bear Market Analysis. Since the high was made in December 2021, price has been moving in a descending channel till date. <\/p>\n Price is expected to to continue going up from here OR form a double bottom before the next impulse move. #DYOR<\/a> #NFA<\/a> pic.twitter.com\/roAgsyZXPf<\/a><\/p>\n \u2014 The London Crypto \uea00 (@SerLondonCrypto) January 9, 2023<\/a><\/p><\/blockquote>\n If that does not happen, investors\u2019 risk-on sentiment could dampen again, which could see\u00a0Ether returning below $1,000 in such a scenario, potentially forming a double bottom.\u00a0<\/p>\n This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\nETH price rises to three-week highs<\/h2>\n
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Cooling inflation boosts Ether price<\/h2>\n
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Ether options traders bet on 160% ETH rally<\/h2>\n
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