Ethereum

bullish

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/ethereum-faces-inflation-and-supply-increase-issues" data-wpel-link="internal" rel="noopener noreferrer nofollow">Ethereum Faces Inflation and Supply Increase Issues</a><br></p>
<p style="text-align: justify">Ethereum, previously regarded as an “ultra-solid” cryptocurrency, is experiencing concerns regarding its inflation rate and increasing supply. The inflation rate has surged to 0.73%, and the total supply has risen from 120,060,000 ETH to 120,309,508 ETH since the Dencun upgrade in March. These changes have caused apprehension among <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a>, impacting Ethereum’s status in the crypto market.</p>
<h2 id="supply-increase-and-inflation-concerns-worry-investors">Supply Increase and Inflation Concerns Worry Investors</h2>
<p style="text-align: justify">Although the rise in supply is beneficial for staking investors, it represents a net value loss of approximately 0.7% for those who do not stake, as noted by <a href="https://en.bitcoinhaber.net/sec-approves-bitcoin-futures-etf" data-wpel-link="internal" rel="noopener noreferrer nofollow">crypto analyst</a> Thor Hartvigsen. This rate, though lower than other Layer-1 projects, still causes concern among investors. The rising supply is seen as a double-edged sword: while it boosts staking benefits, it simultaneously undermines the value for non-stakers.</p>
<p style="text-align: justify">Ethereum’s price has recently increased by 0.5% to $2,520. Technical analysis indicates that ETH is fluctuating between a support level of $2,320 and a resistance level of $2,817. A double bottom pattern on the daily chart suggests a potential upward movement. If Ethereum exceeds the $2,817 resistance, the price could reach $3,300, which might trigger the 100-day Simple Moving Average (SMA) crossing above the 200-day SMA, signaling a bullish market trend.</p>
<h2 id="market-indicators-and-possible-scenarios">Market Indicators and Possible Scenarios</h2>
<p style="text-align: justify">However, failure to surpass the $2,817 resistance could lead to a pullback for Ethereum, as observed in recent weeks. The Relative Strength Index (RSI) stands at 42 and is attempting to rise above the SMA, indicating a potential short-term bullish trend. Despite this, the presence of red bars in the Awesome Oscillator suggests that bearish sentiments persist in the markets.</p>
<p style="text-align: justify">If Ethereum closes below the $2,320 support level, the bullish scenario might be invalidated, potentially leading to further declines.</p>
<h2 id="investor-takeaways">Investor Takeaways</h2>
<p style="text-align: justify">– The inflation rate increase to 0.73% raises concerns about Ethereum’s stability.<br> – The total supply of Ethereum has grown significantly post-Dencun upgrade.<br> – Non-stakers face a net value loss of around 0.7%.<br> – Technical indicators suggest possible bullish trends but also warn of bearish scenarios.</p>
<p style="text-align: justify">As Ethereum grapples with inflation and supply issues, investors should closely monitor market trends and technical indicators to navigate potential risks and opportunities.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/ethereum-faces-inflation-and-supply-increase-issues" data-wpel-link="internal" rel="noopener noreferrer nofollow">Ethereum Faces Inflation and Supply Increase Issues</a></h5>

Ethereum Faces Inflation and Supply Increase Issues

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