Ethereum (ETH) and the crypto market may see higher prices this month
As September 13, the date of the long-awaited Ethereum mainnet merger approaches, the crypto community believes it will decide the fate of both the Ethereum blockchain and the broader crypto ecosystem. However, there is another event that will take place on the same day that could affect the market, the release of US CPI and inflation data.
Crypto analyst: The merger will not affect the fate of ETH and the broader crypto market
The renowned cryptoanalyst, Cred, has evaluated the hype surrounding the upcoming Ethereum Merge event. He concluded that it would have no bearing on the crypto market and the ETH price no matter what happens.
Related Reading: Why Ethereum Price Extends May Earn Ahead of ‘The Merger’
The Merge is set to go live on September 13 after several test nets have been launched. It will finally ease the Ethereum Blockchain from its previous energy-intensive PoW consensus mechanism onto the PoS mechanism with 99.95% less energy consumption.
The merger has already sent the price of ETH up over 40% from around $1,000 to $1,500 in July. It then went from $1,600 to $2,000 in mid-August when the last Goerli testnet ran successfully. Proponents of the merger have suggested that when it is fully rolled out, it will cause both ETH and the overall crypto market to surge.
The Real Game Changer: Publication of CPI and Inflation Data
However, according to Cred, the actual event that will make the difference, which happens on the same day, is the release of the latest inflation data.
The US Consumer Price Index (CPI) release and inflation data will also be published on 13 September. If the Fed softens its stance and goes dovish, things will look up for ETH and crypto in general. If the Federal Reserve maintains its hawkish outlook or remains neutral, the crypto winter could last longer.
Cred: The Market Will Credit The Wrong Catalyst
However, the analyst predicts that the crypto community will likely credit Ethereum Merge for whatever happens instead of examining macroeconomic data. That’s because the last time ETH rallied was because of the “major countertrend rally in stocks” caused by “macro” jumping into Ethereum. Cred believes the same will happen in the merger that coincides with the inflation data release.
Related reading: Why extreme fear is back in crypto in a big way
According to the cryptanalyst,
“If ETH dumps, as a result, everyone will say, ‘Oh look, the merger is priced in. It was obvious.’ If ETH does not dump; as a result, people will say, ‘The flogging wasn’t priced in, and it’s just the beginning.'”
In any case, Cred believes that there is a false causal relationship.
Per CoinMarketCap, Ethereum is currently trading at around $1,500.
Featured image from Pixabay and chart from TradingView.com
