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Why is Ethereum (ETH) price up today?

Why is Ethereum (ETH) price up today?

Ethereum’s native token, Ether (ETH), rose to three-week highs, rallying in lockstep with the broader  cryptocurrency market, as well as stocks. 

ETH price rises to three-week highs

On Jan. 9, the ETH’s price rose 2.85% to cross above $1,325 for the first time in three weeks, a key level that could pave the token’s path toward $1,350 next if its previous price performance is any indication.

The crypto market’s capitalization gained 2.66%, or $21.18 billion, in the same period. 

ETH/USD daily price chart. Source: TradingView

Cooling inflation boosts Ethereum price

Investors are rushing into riskier markets on signs of cooling inflation.

Notably, on Jan. 6, the U.S. Labor Department’s nonfarm payrolls report showed a slowdown in wage increases, which market watchers interpreted as a sign that the Federal Reserve’s hawkish policy has brought down inflation successfully.

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Such a scenario could prompt the Fed to slow the pace of its rate hikes, which, in turn, could prove bullish for crypto assets like Ether.

The market now awaits fresh data on consumer prices in the U.S. due on Jan. 12. The figures will set the tone for the Federal Open Market Committee’s two-day meeting starting Jan. 31. CME data shows a market consensus for a 50-75 basis point rate hike entering February. 

Ethereum options traders bet on 160% ETH rally

As macro indicators turn short-term bullish for risk markets, Ethereum options traders have grown confident about a possible price rally in the first quarter of 2023. 

Cast your vote now!

Notably, the Ethereum open interest for contracts expiring on Mar. 31 is majority bullish, with most strike targets falling inside the $3,500-$4,000 range, according to data tracked by Glassnode.

Ethereum options open interest by strike price. Source: Glassnode

The upside outlook receives a further boost from Jiang Zhuoer, the CEO/co-founder of Bitcoin (BTC) mining service B.TOP, who believes Ether would permanently break out from its current bottom range anywhere between March and May 2023, citing its deflationary supply in…

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