- Risky assets 'anti-dollar' on wave of weak dollar, after lower than expected PPI inflation reading from US
- The highly anticipated Shanghai Hard Fork did not cause Ethereum's declines
- Vitalik Buterin, the Ethereum founder, indicated that after the Shanghai update, the project has already passed the main milestones necessary for further development
The second largest cryptocurrency, Ethereum soared above key resistance on a wave of rising risk sentiment. The headline PPI inflation reading from the U.S. came in well below expectations, coming in at 2.7% versus 3% forecast and 4.6% previously. The data supported sentiment among risk assets and increased the chances of no Fed rate hike in May. Along with the cryptocurrency market, Wall Street index futures also gained today.
The Ethereum Shanghai modification introduced yesterday, contrary to the predictions of many analysts including JP Morgan, did not cause a cascading sell-off and rapid withdrawals of Ethereum from the Beacon chain. In the face of a definite increase in risk sentiment, the market did not see the Ethereum fork as a 'catalyst' for profit realization. The modification has ensured that investors will get the opportunity to 'staking' Ethereum smoothly, without having to lock up their funds on the network for years to come. By many analysts, Ethereum is pointed out as the main candidate to 'dethrone' Bitcoin in the next few years, mainly because of its technological superiority and utility functions. Among other things, decentralized applications and smart contracts are built on the ETH blockchain.
Looking at the chart of ETHEREUM, on the H4 interval, we see that Ethereum has reached the euphoria peak of the summer of 2022. On March 13, the price broke above the SMA200 (red line) signaling a further bullish trend. Since the beginning of the year, the price of ETH has risen nearly 67% against Bitcoin's 82% rise.
Source: xStation5
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