ETH, the cryptocurrency that powers the Ethereum blockchain, was last changing hands around $1,275, up around 6.5% in the last seven days according to CoinMarketCap. The cryptocurrency gained 6.5% alone on Wednesday as traditional risk assets like US equities rallied in wake of a more dovish-than-expected message from the chairman of the US Federal Reserve Jerome Powell on the prospect for further rate hikes in the coming months. Price predictions have become increasingly bullish in wake of the latest move higher.

Ethereum is trading a tad lower on the day on Thursday amid profit-taking, but has gained nearly 18% since printing a double bottom earlier this month under $1,100. Thursday saw the release of fresh US data (Core PCE Price Index) that supported the idea that inflation in the US is easing faster than expected, supporting the idea that the US central bank won’t have to be as hawkish from now on. The US dollar has been selling off as a result and US equities could easily catch a bid once again, which could create the conditions for further ETH upside.

(by Joel Frank)