Ethereum Climbs Bitcoin’s Coattails to 5% Gain

After dropping to $3,070 (ETH/USD) on Wednesday, Ethereum (ETH) has shot to $3,469 and is continuing its climb.

That is a 5.44% increase from yesterday, and it would be remiss to say it was anything but help from Bitcoin that allowed Ethereum to make its comeback. Of course, it was Bitcoin’s decline that caused Ethereum to mirror it on Wednesday.

Ethereum had been in decline for a week, since the 13th, about the same time Bitcoin started to fall as well. The entire crypto market began going bearish and was having trouble making any kind of recovery. This occurred right at the same time the US government posted details about high inflation rates of 3.2%, which was an increase from the month before.

What stopped the descent to the bottom for the crypto market. It seems to have been the slightly positive report from Wednesday’s FOMC meeting. The decision was made there to leave interest rates alone and not cut them for the time being. This allows the economy some time to recover, and it means the cryptocurrency market will not be hindered by rate cuts as it attempts to regain its health.

Before last week’s decline, much of the crypto market has been bullish for months, including Ethereum, which gained 120% since mid-October of last year.

Where Is Ethereum Headed?

Today’s surge could be the beginning of a long bullish trend, but we will have to wait and see. Because the upswing was spurred by positive economic information, we expect the trend to continue. It is telling how relevant inflation and other economic factors are to decentralized finance tokens, and it would be wise for investors to keep watching those economic indicators for signs of where Ethereum and other cryptos are headed.

Ethereum is likely to keep pushing up to $35,000 for Thursday and hit $40,000 again next week. We could even see the token break $50,000 by the time Bitcoin’s halving happens.