- Ethereum price has recovered modestly in the past few days.
- Focus shifts to the upcoming merge and Jackson Hole Symposium.
Ethereum price crawled back on Thursday as investors refocused on the upcoming Jackson Hole Symposium. The ETH token rose to a high of $1,710, which was the highest point since August 19. It has risen by over 92% from the lowest point this year.
Jackson Hole Synposium
There are two main factors driving Ethereum prices. First, there is the upcoming Jackson Hole Symposium in Wyoming. It is a gathering of key policymakers from around the world. Some of the most notable who will address the gathering are the Bank of England’s Andrew Bailey and Federal Reserve’s Jerome Powell.
Powell’s statement will be important because it will be his first one since the US published the latest consumer inflation data. The numbers showed that the country’s consumer and producer inflation dropped sharply in July as the prices of gasoline slipped.
Therefore, Powell will provide more information about whether the Fed will continue hiking rates or whether it will slow the process. With the housing sector in trouble and with inflation falling, analysts expect that the Fed will not be as aggressive as it was in the past meetings.
Fed’s decisions have an impact on Ethereum and other cryptocurrency prices. In fact, the recent rally has been attributed to hopes of a more dovish FOMC.
Ethereum price has also recovered slightly as investors focus on the upcoming merge event. Merge is a situation where the existing proof-of-work’s Ethereum will be migrated to the Beacon Chain, which is a proof-of-stake platform.
There will be many benefits of this transition. For example, the new Ethereum will be more climate-friendly since it will not rely on mining. At the same time, it will be substantially faster and more cost-effective than the current version.
Ethereum developers will then shift to improving the network by introducing the concept of sharding that is widely used by Near Protocol and Zilliqa.
Ethereum price prediction
The four-hour chart shows that the ETH price dropped sharply earlier this week as demand for cryptocurrencies eased. It has now started crawling back and managed to move above the 50-day moving averages while the Stochastic Oscillator has moved above the overbought level.
Therefore, with the merge scheduled to happen in September, and with the Fed set to slow its tightening, there is a likelihood that the coin will jump above this month’s high of $2,020. If this happens, the next key level to watch will be at $2,500.
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