When will Ethereum start to rise again?

Will Ethereum go up? With ETH rising above $1000 today, is it time to buy Ethereum now?

Why was Ethereum going down?

Cryptocurrencies started to fall after the US inflation rate breached the key 6% level. This is in turn related to many factors, including crude oil prices. See how crude oil prices have risen over the past 7 months. It is the exact mirror of Ethereum prices. This mirroring is a coincidence as there are other factors as well, but this is an important metric to monitor if we are to predict when Ethereum will rise.

Ethereum’s run between May and June coincides with a significant drop in TVL (Total Value Locked) on the Ethereum Blockchain during and after the $LUNA crash and weekend crash. Alts are being hammered and since most of them trade on Ethereum, ETH is hurting more. With the overall cryptocurrency market heading down and many transactions operating on the Ethereum Blockchain, this was expected. Ethereum was hurt much more after the crash of $LUNA.

Will Ethereum go up?

Ethereum has already risen since the June low. However, the cryptocurrency is struggling to stay above $1100 due to negative sentiments in recent days.

  1. Many technicians have started to become favorable for both Bitcoin and Ethereum after last weekend’s crash
  2. Ethereum had collapsed below $900, 80% below the November 2021 peak. With two interest rate hikes already completed, the chances of Ethereum dropping significantly had diminished
  3. As interest rates rose, crude oil prices began to fall in June. Crude oil prices have fallen by almost 10% in the last 2 weeks. The decline in inflation should be visible in the next 6 weeks or even earlier

When will Ethereum go up?

  1. Ethereum has already risen since the June low. So there is a high probability that the ETH will remain above $1000 for some time
  2. However, even if it were to fall again, Ethereum will likely rise in July if the US reports a lower consumption inflation rate. After all, Ethereum started to fall from its peak when the US reported an inflation rate above 6%. What are the chances of the US reporting a lower inflation rate? It is moderate.
    • Energy prices (gas prices) in the United States have started to fall in the last week. However, much of the benefit of this decline is likely to be visible in August.
    • Consumer spending on goods began to decline in May itself and could decline even more in June. So the odds of a lower inflation rate are moderate
  3. Ethereum is likely to rise in August if the US reports a lower consumer inflation rate. Given 3 interest rate hikes by the Fed by August and crude oil prices likely to have approached $100, the odds of this are high

Will Ethereum go up? What are the risks of this not happening?

  1. Another type of Moon or Crash Celsius
  2. The US economy falls into recession and there are job losses
  3. Competitor updates like Cardano’s Vasil Hard Fork that drive customers away from Ethereum
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