The post Ethereum Faces Inflation and Supply Increase Issues appeared on BitcoinEthereumNews.com.

Ethereum, previously regarded as an “ultra-solid” cryptocurrency, is experiencing concerns regarding its inflation rate and increasing supply. The inflation rate has surged to 0.73%, and the total supply has risen from 120,060,000 ETH to 120,309,508 ETH since the Dencun upgrade in March. These changes have caused apprehension among investors, impacting Ethereum’s status in the crypto market. Supply Increase and Inflation Concerns Worry Investors Although the rise in supply is beneficial for staking investors, it represents a net value loss of approximately 0.7% for those who do not stake, as noted by crypto analyst Thor Hartvigsen. This rate, though lower than other Layer-1 projects, still causes concern among investors. The rising supply is seen as a double-edged sword: while it boosts staking benefits, it simultaneously undermines the value for non-stakers. Access NEWSLINKER to get the latest technology news. Ethereum’s price has recently increased by 0.5% to $2,520. Technical analysis indicates that ETH is fluctuating between a support level of $2,320 and a resistance level of $2,817. A double bottom pattern on the daily chart suggests a potential upward movement. If Ethereum exceeds the $2,817 resistance, the price could reach $3,300, which might trigger the 100-day Simple Moving Average (SMA) crossing above the 200-day SMA, signaling a bullish market trend. Market Indicators and Possible Scenarios However, failure to surpass the $2,817 resistance could lead to a pullback for Ethereum, as observed in recent weeks. The Relative Strength Index (RSI) stands at 42 and is attempting to rise above the SMA, indicating a potential short-term bullish trend. Despite this, the presence of red bars in the Awesome Oscillator suggests that bearish sentiments persist in the markets. If Ethereum closes below the $2,320 support level, the bullish scenario might be invalidated, potentially leading to further declines. Investor Takeaways – The inflation rate increase to…

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Filed under: News - @ August 31, 2024 5:20 am