Ethereum has seen a slight increase of 0.5% on Thursday, following a drop in US inflation rates. This positive movement comes amidst mixed sentiment among investors, as indicated by on-chain activity, despite the potential launch of spot ETH ETFs.
The recent decline in the US Consumer Price Index (CPI) for June has been a contributing factor to Ethereum’s price movement. This decline has led to expectations of a rate cut by the Federal Reserve in September. Additionally, the upcoming launch of spot ETH ETFs and predictions of a positive Q3 align with expectations of a rebound in the crypto market by JP Morgan analysts.
On-chain activity for Ethereum has shown a flurry of exchange deposits and withdrawals in the past 24 hours, reflecting mixed sentiment among investors. While some are de-risking, others are accumulating, leading to a horizontal trend in ETH’s price.
Despite increasing staking deposits, Ethereum’s supply has been trending upwards since the Ethereum Dencun upgrade in March. This shift in supply may impact ETH’s deflationary status in the future.
In terms of technical analysis, Ethereum has posted a bearish exhaustion candle on the 8-hour time frame, signaling a potential downturn if the SEC delays approval of ETH ETFs. While the market remains uncertain, there is optimism surrounding lower-than-expected CPI data.
Looking ahead, the Ethereum community is focusing on the Sharding upgrade after the Merge, which aims to improve scalability through more efficient data storage. Additionally, improvement proposals like EIP-4844 promise reduced gas fees and improved transaction speeds on the Ethereum network.
Overall, Ethereum’s price movement in the coming days will be influenced by a combination of market factors, on-chain activity, and regulatory decisions.