A variety of bullish factors back Ethereum’s recent rally to $2,500.
Ether price witnessed a 10% price increase in the first nine days of February, breaking above $2,450 for the first time in three weeks. This movement was aligned with the broader cryptocurrency market’s bullish momentum and significantly influenced by the macroeconomic environment.
Despite the reasons behind Ether’s (ETH) rally, investors are growing more bullish as deposits on the Ethereum network increase. However, is this momentum sufficient for a sustainable rise above $2,800?
On Feb. 4, United States Federal Reserve Chair Jerome Powell emphasized the need for a more sustainable public debt path in an interview. In 2023, U.S. debt service costs represented 2.4% of the economy’s gross domestic product, and projections indicate a potential increase to 3.9% in 2034, as reported by the Congressional Budget Office. These projections will prompt the Fed’s policy interest rate to decrease, according to Neil Irwin, author of Axios Macro.
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Source: https://cointelegraph.com/news/ethereum-network-strength-macroeconomic-factors-back-eth-s-rally-to-2-5k