Ethereum Climbs after Inflation Increases

Is Ethereum (ETH) inflation-resistant? That looks to be the case after higher than expected inflation numbers came in Wednesday and yet Ethereum is gaining today.

ETH is up 3.44% over the last week and 3.38% over the last 24 hours. That places its price at $3,507 (ETH/USD) as the token inches closer to $4,000.

ETH recently soared to $3,712 as Bitcoin was nearing a new record, and then both coins dropped quickly afterwards. Ethereum lost much of its gains but not all of them and is looking bullish now as much of the market is down.

The cryptocurrency market as well as the stock market and many commodities are lower than they have been recently, and that mostly comes down to hot inflation numbers released on Wednesday. The US CPI  (Consumer Price Index) report was worse than expected, with an increase of 3.5% compared to last year at this time.

The alarming trend of rising inflation is frightening to most of the markets, and it places the cryptocurrency market in a spot where it is now riskier than before for investors. Yet still, Ethereum is on the rise.

Ethereum Could Stay Bullish

We expected to see lower numbers today after yesterday’s inflation news, but that has not been the case for Ethereum. This means that the coin could continue to gain as the overall markets are down, proving recession proof and inflation proof.

Ethereum has gained 34% since the start of this year, making it one of the biggest gainers among the major crypto tokens. Ethereum could continue to gain during the next few weeks, as Bitcoin halves and the market enjoys greater mainstream interest.

That halving only happens once every few years, so Ethereum could definitely benefit and climb very close to $4,000 when that happens. This is definitely one of the cryptos with the most earning potential right now among cryptos that have proven to be stable, high earners this year.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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