Ethereum has rushed more than 8% in the last 24 hours, accelerating its momentum on Tuesday amid an encouragemental inflation report and other bright indications that have rekindled investors’ appetite for crypto and other risk-on assets.
The second-largest cryptocurrency by market capitalization fell below $2,700 at some point in the late afternoon Eastern time before falling slightly below that threshold. Still, the coin has risen by a whopping 51% over the past seven days, according to Coingecko, a data provider at Crypto Markets.
“We are primarily seeing the continued momentum of ETH,” said Carlos Guzman, research analyst at Crypto Market Maker GSR. Decryption. “ETH has finally come into the spotlight after falling behind the entire latest cycle, and investors are turning their attention again as a change of emotions.”
ETH began rebounding from a previous plateau of nearly $1,700 late last week after a successful Pectra upgrade to increase speed and efficiency in the Ethereum network, making it appear that the Trump administration is temporarily retreating from the World Trade War at least.
Tuesday’s Jump is shocked by many analysts who were hoping for a bigger increase after the latest consumer price index (a widely viewed measure of inflation) was relatively flat in April, with prices rising 0.2%. Annual inflation is rising by 2.3%, near the US Central Bank’s 2% target, and if it reaches it, it is likely that banks will relax their monetary policy.
“The market today is responding positively to good news about the US inflation front, and with a lower than expected CPI print, it could pave the way for the Fed to cut interest rates,” Guzman said, noting in the latest meeting, noting Federal Reserve inflation concerns. However, he carefully added, “The impact of tariffs has not yet been reflected in the data.”
Other altcoins are also on the green, with the tokens of smart contract platform Solana (SOL) rising more than 5% in the last 24 hours, with the popular meme coin indge coin (DOGE) and ninja (SHIB) rising almost 4% each. Bitcoin, the largest digital asset by market value, has recently traded hands beyond $104,200, a profit of 1.4% a week.
Two of the three major equity indices were closed in positive territory, with the high-tech NASDAQ and S&P 500 gaining 1.6% and 0.7% respectively.
Notes on DecryptionGreg Magadini, director of derivatives at Amberdata, a research group focusing on Crypto, wrote that ETH “has a lot of space…particularly because risk assets utilities continue to make rapid rebounds.”
“If you look at the positioning of the Delibit (maintenance margin), we see that $2,800 has the best gamma for dealers, meaning a potential point of resistance from the options market,” writes Magadini.
However, Magadini added that options’ price trends “indicate the market is not prepared for this. sharp eth rally ” (his emphasis).
“Positioning is like that do not have “It was expanded here,” he wrote.
Edited by Andrew Hayward
