The main cryptocurrencies have experienced an upward trend.
When the November Consumer Price Index was announced, the major cryptocurrencies rallied to trade in the green. Due to the significant reduction in US inflation statistics, the largest cryptocurrency Bitcoin experienced a big rally on Wednesday, reaching its highest level in a month. In the last twenty-four hours, Ether has also seen a positive trend, as investor attention has shifted to the FOMC policy meeting.
The US inflation rate fell to 7.1% in November, below analyst expectations of 7.3%, data showed Tuesday. Since last December, the inflation rate this month is the lowest of the whole year.
The Federal Reserve is widely expected to raise interest rates by a quarter of a percentage point, at the end of its two-day policy meeting on Wednesday, implying a less aggressive stance from the central bank in light of recent data.
Will Ethereum Overtake BTC Soon?
The current 24-hour Ethereum transaction volume is $8.3 billion at the $1,323 price. According to CoinMarketCap, the value of Ethereum has increased by around 4.5% in the last 24 hours, reaching a total market capitalization of $162 billion.
Ethereum price recently broke above the $1305 resistance mark, breaking out of an ascending triangle pattern on the 4-hour time frame. This level is now acting as support. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) indicate a positive outlook.
Smart Contracter, the pseudonymous analyst who accurately predicted the bottom of Bitcoin (BTC) in 2018, now says that Ethereum (ETH) will start to rise dramatically, on its way to becoming the largest digital asset by market capitalization.
According to Smart Contracter’s tweets to his 216,700 followers, the largest altcoin’s value is likely to reach levels not seen in more than five years. Smart Contracter adds that it anticipates that Ethereum will overtake Bitcoin in market capitalization during the next bull market.
It is worth noting that Smart Contracter is not the only one predicting an increase in the price of Ether. Mike McGlone, a commodities analyst at Bloomberg, noted that the fact that stablecoins make up four of the top five digital assets by volume shows just how valuable Ethereum’s technology is. The expert explains how Ethereum technology facilitates instant and low-cost transactions in digital currencies.
On the other hand, Raoul Pal, a former Goldman Sachs executive, refers to a graph titled “Ethereum Today vs. 2017-2021 Analog chart”, which, if it were to be followed, would indicate that ETH is currently very close to the bottom of the bear market.
The expert also analyzed a chart that he says shows how investors have become quite bearish about the stock market.
What Can Be Expected in the Future?
The Federal Open Market Committee (FOMC) will have its last meeting of the year later today. As is customary, Fed members will share their most recent inflation and interest rate projections (dot plot) with the public after the meeting.
Following the release of the CPI data, major cryptocurrencies including ETH, BTC and the rest of the market experienced an uptrend. The same thing is likely to happen after the FOMC meeting.
By Audy Castaneda
