Why is Ethereum (ETH) price up today?
Ethereum's native token, Ether (ETH), rose to three-week highs, rallying in lockstep with the broader cryptocurrency market, as well as stocks.
On Jan. 9, the ETH's price rose 2.85% to cross above $1,325 for the first time in three weeks, a key level that could pave the token's path toward $1,350 next if its previous price performance is any indication.
The crypto market's capitalization gained 2.66%, or $21.18 billion, in the same period.
Investors are rushing into riskier markets on signs of cooling inflation.
Notably, on Jan. 6, the U.S. Labor Department's nonfarm payrolls report showed a slowdown in wage increases, which market watchers interpreted as a sign that the Federal Reserve's hawkish policy has brought down inflation successfully.
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Such a scenario could prompt the Fed to slow the pace of its rate hikes, which, in turn, could prove bullish for crypto assets like Ether.
Inflation will continue to decline in the next few months - this will cause the fed to pause and eventually ease and the markets to roar upwards. Once the fed begins easing we will enter phase 2 of the inflation saga. People really don’t seem to understand how sticky inflation is pic.twitter.com/iFKbUWg9QA
The market now awaits fresh data on consumer prices in the U.S. due on Jan. 12. The figures will set the tone for the Federal Open Market Committee's two-day meeting starting Jan. 31. CME data shows a market consensus for a 50-75 basis point rate hike entering February.
As macro indicators turn short-term bullish for risk markets, Ethereum options traders have grown confident about a possible price rally in the first quarter of 2023.
Notably, the Ethereum open
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