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Ethereum (ETH) Reaches $2,000: Key Reasons Behind the Rise

Thu, 04/13/2023 - 13:02
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Alex Dovbnya
Ethereum (ETH) has made triumphant return to $2,000 mark, spurred by combination of factors, including Shapella upgrade and surprising drop in PPI inflation
Ethereum (ETH) Reaches $2,000: Key Reasons Behind the Rise
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Ethereum (ETH) has experienced a noteworthy resurgence, breaking the $2,000 price barrier for the first time since August 2022. The Bitcoin (BTC) rival has seen a 4% increase over the past 24 hours. It is currently trading at $2,004 on the Bitstamp exchange.

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Several key factors have contributed to this remarkable rise, renewing investor interest in the second largest cryptocurrency by market capitalization.

First, the successful launch of Shapella, Ethereum's first major upgrade since The Merge, has played a significant role in the price surge. Shapella enables validators to withdraw their staked Ether (ETH). Notably, the chief altcoin has defied market expectations of increased selling pressure.

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Second, recent data from the Bureau of Labor Statistics (BLS) revealed that the Producer Price Index (PPI) for final demand declined by 0.5% in March. This drop in inflation, which surpassed the estimated 0.1% and the previous month's -0.1%, has potentially influenced the ETH rally.

Pantheon Macroeconomics, a U.K.-based economic research consultancy, recently predicted that good PPI numbers could prevent another Federal Reserve rate hike, which could potentially bode well for risk assets.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.