Home Markets Crypto Market Review, August 11

Crypto Market Review, August 11

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Crypto Market Review, August 11

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Arman Shirinyan

Market heads for reversal as rally in CPI data keeps it afloat

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The release of CPI data ended up being one of the strongest fuels for the cryptocurrency market rally over the past few weeks, as the majority of digital assets entered short rallies. term, with Ethereum crossing the $1,900 threshold, Bitcoin targeting $25,000 and the total market capitalization surpassing $1.1 trillion.

Ethereum’s Real Goal Isn’t $2,000

Although $2,000 is a massive psychological level for Ethereum traders and investors, the real target for the second largest cryptocurrency is around $2,100, as the price level correlates with the strong 200-day exponential moving average technical resistance.

Ethereum card
Source: TradingView

The aforementioned price level was also the latest breakout point for the cryptocurrency, as Ether actively attempted to rebound above the $2,200 price level after plunging to $1,717.

Thankfully, the next Merge update fueled the second largest rally cryptocurrency on the market with the price per ETH exceeding $1,900 within days. Compared to BTC, Ether has shown a price increase of more than 140% over the past few weeks.

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Previously, we shared on U.Today that Ethereum might be a better option for gaining exposure to the cryptocurrency market compared to Bitcoin, as Ether offers more volatile performance in the market, which can be useful during downturns. Bull races. Despite higher volatility during an uptrend, Ether seems to lose the same percentage of its value during corrections.

Total market capitalization targeting $1.2 trillion

With the release of CPI data, the cryptocurrency market took shape at a market capitalization of $1.2 trillion, with the price of Bitcoin hitting $25,000. Unfortunately, the pattern of trading volume on Bitcoin and other cryptocurrencies shows a fading trend that could lead to a reversal in the short to medium term.

Given the lack of macro and technical signals, the CPI data may not be enough to fuel a long-term market reversal, meaning the growth we are seeing now is purely speculative.

Cap.  M total
Source: CoinMarketCap

If we compare the momentum of core inflation MoM, we can clearly see that the latest fall in inflation does not change course over the long term. As some analysts explain, one of the main reasons why we have seen an unexpected drop in inflation figures is that energy prices have returned to February levels, while prices for services and housing continue to increase.

But despite the controversy surrounding the recent report, the market continues to rise steadily, with the majority of altcoins gaining up to 20% of their values. Lido Finance is still capitalizing on the upcoming merger update for Ethereum as it remains one of the largest holders of Ethereum tokens staked in the market. Celsius rallies on news of Celsius takeover by Ripple assets.

At press time, Celsius is showing a price increase of 23% in the last 24 hours, while the LDO of the Lido Finance token is recovering to 11%.

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