Ethereum’s native token, Ether (
Notably, the Ethereum open interest for contracts expiring on Mar. 31 is majority bullish, with most strike targets falling inside the $3,500-$4,000 range, according to data tracked by Glassnode.
The upside outlook receives a further boost from Jiang Zhuoer, the CEO/co-founder of Bitcoin (BTC) mining service B.TOP, who believes Ether would permanently break out from its current bottom range anywhere between March and May 2023, citing its deflationary supply in recent months.
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“Looking at the data of Ethereum, the inflation rate was 3.59% when ETH was in Proof-of-Work (POW). Bitcoin’s inflation rate is 1.72%,” he wrote, adding:
“Even 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.”
However, the Fed would need to see a sustained decline in inflation before it puts a brake on its rate-hiking-spree, cautions Edward Park, chief investment officer at London-based Brooks Macdonald.
$ETH. Bear Market Analysis. Since the high was made in December 2021, price has been moving in a descending channel till date.
Price is expected to to continue going up from here OR form a double bottom before the next impulse move. #DYOR #NFA pic.twitter.com/roAgsyZXPf
— The London Crypto ? (@SerLondonCrypto) January 9, 2023
If that does not happen, investors’ risk-on sentiment could dampen again, which could see Ether returning below $1,000 in such a scenario, potentially forming a double bottom.
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.
