Etherum's original dynamic password ETH rose to a three-week high, rising in line with the broader digital money market and other stocks.

ETH price rises to a three-week high

ETH's price rose 2.85% on Jan. 9, reaching $1325 for the first time in three weeks, an important level that is likely to rise to $1350 for the next step, if there is any sign of its previous price.

Over the same period, the total market capitalization of access to the password market increased by 2.66%, or $2.18 billion.

Cooling inflation and raising the price of ether

Because of the signs of cooling inflation, investors have flocked to the riskier market.

In particular, on January 6th, the Labor Department's non-farm payrolls results showed that wage growth slowed, and market watchers saw it as a success in bringing down inflation by the current policy of radicals at the Fed meeting.

This is likely to slow the pace of interest rate hikes at Fed meetings, which could be good for encrypted assets such as ethernet.

The market is now waiting for the latest report on the foreign customer price index, which is scheduled for release on January 12th. The information also sets the theme for the two-day federal market federation conference that begins on January 31st. Statistics from the Chicago Mercantile Exchange show that the market agrees that interest rates will rise by 50 to 75 percentage points by February.

Ethernet stock index holders bet on an increase of 160% in ETH.

With the shift of macro indicators to a short-term rise in the risky market, etheric index futures holders are becoming more and more confident about the possible price rebound in the first quarter of 2023.

In particular, according to information tracked by Glassnode, most of the Ether open contracts expiring on March 31st rose, and the overall target for most failures fell to the range of $3500 to $4000.

Jiang Zhuo, co-founder and CEO of B.TOP, the mining service center of BTC (BTC), further enhanced the outlook for the rising market, in his view, Ether will permanently upgrade the bottom segment of this stage in the period from March to May 2023 due to deflation in its supply over the past six months.

"if you look at the Ethernet information, the inflation rate of ETH after POW is 3.59%. He wrote that Bitcoin had an inflation rate of 1.72%, adding:

Even after the bear market, ETH inflation was as low as 0.01 per cent without a vibrant currency burn. [.] From this data, it can be concluded that the ETH bull market will operate in the form of spiral deflation.

But Edward Park, chief investment officer of Brooks Macdonald in London, UK, warned that the Fed meeting must see falling inflation before it could resist interest rate hikes.

If this does not happen, the adventure mentality of investors may be restrained again, in which case Ether may return less than $1000, which may lead to a two-way bottom.