Ethereum Price Prediction as $10 Billion Trading Volume Comes In – Can ETH Reach $10,000?
Ether (ETH), the cryptocurrency that powers the world’s largest and most widely used smart-contract-enabled layer 1 blockchain Ethereum, has been nudging higher in recent trade and was last changing hands around 0.5% higher in the last 24 hours in the $1,610 area, now up close to 5% from earlier weekly lows in the $1,530s.
Crypto markets have seen a broad recovery since jitters regarding FTX’s plans to sell $3.4 billion in digital assets weighed on sentiment earlier in the week.
Digital asset investment firm Arca’s CIO Jeff Dorman was quoted in the crypto press on Tuesday as saying that the market reaction to potential FTX sales was an overreaction.
“The way crypto market makers and traders are front-running the FTX supply shows a complete misunderstanding of how a syndicated sale process works,” he said, adding that “this isn’t an every-man-for-himself VC unlock... This is a court-ordered process that Galaxy will sell very slowly and opportunistically”.
24-hour trading volumes of nearly $10 billion in the Ether market, as per CoinGecko, suggest potential dip buying activity.
Elsewhere, US inflation data, despite the headline YoY and Core MoM numbers coming in a little above expected, may also be cushioning sentiment.
That’s because the YoY rate of Core inflation posted a big decline to 4.3% from 4.7%, easing pressure on the Fed to continue hiking interest rates.
The US central bank embarked on a historic interest rate hiking cycle last March and has since lifted interest rates 525 bps to 5.25-5.5%.
Core inflation is more closely monitored by the Fed as, according to them, it gives a better representation of price pressures in the US economy than the headline figures, which can be easily buffeted by volatile food and energy
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