Ethereum’s native token, Ether (ETH), has the potential to double its market valuation in the coming months, thanks to a confluence of supportive technical and fundamental indicators.
Ether’s price soared by more than 9% on Oct. 1 to hit nearly $3,300 for the first time in 10 days. Its gains surfaced primarily in the wake of a price rebound across all the top cryptocurrencies, including Bitcoin (BTC), which gained 9.5% to hit $48,000, its highest level in 10 days.
Ether-Bitcoin correlation against rising U.S. inflation
Oct. 1’s crypto market boom coincided with the release of the United States Commerce Department’s report on consumer spending.
The data shows that the U.S. core personal consumption expenditures price index, the Federal Reserve’s preferred measure of inflation, rose by 0.3% in August and was up 3.6% year-over-year. Thus, the core inflation surged to its highest levels in 30 years.
Speculators tend to treat Bitcoin as a hedge against inflation, which explains the benchmark cryptocurrency’s latest response to the higher