As Bitcoin continues to hover around $19,000, the second largest cryptocurrency by market cap, Ethereum, is eventually moving towards retesting its lost range of $1,700.
Ethereum is currently changing hands at $1,626, after a massive 7.05% gain over the past 24 hours. At the moment, Bitcoin is struggling to gain momentum and avoid another rejection, thus, market participants have turned to Ethereum as their savior.
The upcoming Ethereum merger has gained both positive and negative speculations. A few market participants claim that the merger will lead to increased demand and drive the ETH price. Conversely, a few others believe that the merger will act as a mere ‘buy the rumour, sell the news kind of event.
Will CPI Data Push the Price of Ethereum?
A ‘rumour buy, sell news event leads to a massive bull run but is not sustainable. If this view is indeed true, the price of ETH will drop shortly after the event ends.
It’s also important to note that on the day of the merger, the US Federal Reserve is expected to disclose the Consumer Price Index (CPI) data which will also reveal the current inflation rate.
Many market experts claim that CPI data will play an important role in market movement. Alex Kruger, a well-known economist, supports this view and says that data will tell us the direction of the market.
Further, Alex claims that if ETH is traded for the event, he would like to go long as the currency might move above $1,700 and hit a target between the $1,800 to $2,100 area.
On the other hand, in terms of the stability of Ethereum after the merge, experts claim that it all depends on the price action potential of the currency. He believes that the merger will focus on ETH, but this is not enough to see ETH rally. According to Alex, if the stock markets rebound after the release of the CPI figures, crypto will follow.
