The Ethereum blockchain’s native asset, Ether (ETH), hit a new record high on Nov. 8, supported by a rally in major cryptocurrencies ahead of a major United States inflation report this week.
The price of ETH rose 3.30% in the past 24 hours to $ 4,770 for the first time in history when Bitcoin (BTC) reclaimed $ 66,000, showing the strong positive correlation between the two digital assets.
Inflationary pressures are returning
Wall Street economists expected the US consumer price index to climb to 5.8% in October ahead of the Bureau of Labor Statistics inflation report on Wednesday. That would be an increase from the rate of 5.4% recorded in September, the highest since 1990.
In addition, Bloomberg consensus forecasts indicated that US consumer prices rose 0.6% between September and October, up from 0.4% between August and September.
The latest inflation data came after the Federal Reserve’s monetary policy meeting last week. The US Federal Reserve decided to end its $ 120 billion monthly asset purchase program in an attempt to curb sustained soaring consumer prices and bring them down to the targeted 2% target.
However, Fed officials maintained their long-term view that inflation is inherently “transitory” and eventually decided to keep their policy rates near zero. This kept Bitcoin’s general upward momentum intact, given its high returns during the period of extremely low interest rates and massive bond purchases.
ETH pricing technique
Ether technical data supported an upside outlook, with the price trend eyeing a surge towards the resistance trendline of its predominant ascending channel – near the $ 4,800 to $ 5,000 range – as shown in the chart below.
Additionally, the ongoing bull flag breakout setup also moved Ether’s profit target to near $ 4,800.
Bernhard Rzymelka, Global Markets Managing Director at Goldman Sachs, anticipates Ether will reach $ 8,000 by December 2021 if the token continues to track inflation expectations.
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