The price of Ethereum (ETH) jumped more than 10% on Friday, reaching a 24-hour high of $1,339. The reason behind the rally is the high ETH gas costs burned by the XEN Crypto project, supported by a decline in the US dollar index and other macros. Crypto analyst Rekt Capital predicts ETH tosses $1,450 into support, key to next bullish momentum.

Ethereum (ETH) Price To Confirm Rally After $1450

Popular analyst Rekt Capital in a tweet on October 14, turning $1,450 in support only portends a bullish rally for Ethereum.

Ethereum witnessed a 10% rebound after the September CPI release, reaching a high of $1,339 from a low of $1,209. The recovery in the stock markets and the Bitcoin price resulted in a recovery in the broader crypto market. The ETH price also jumped higher with the price currently trading above $1,300.

Ethereum (ETH) price in the span of 1 week. Source: Rekt Capital

However, Rekt Capital believes that Ethereum has gone straight into major resistance. It has been hovering below the resistance level for the past few weeks. The ETH price will only turn bullish if it moves to $1,450 in support. Until then, Ethereum is under pressure.

Currently, Ethereum is holding above the $1,300 level despite the US dollar index (DXY) jumping above 113 again. The ETH price will most likely move up or sideways as the possibility of another drop is low.

Meanwhile, Glassnode reports that the number of addresses with at least 1 ETH has just reached an ATH of 1,592,964. In addition, the number of addresses sending ETH to exchanges has hit its 21-month low of 1,228. It indicates that the ETH price is most likely to rise higher and the interest of traders is increasing.

The number of addresses with 1 Ethereum (ETH). Source: Glassnode

Ethereum Turns Deflationary Amid High Gas Costs

Ethereum is believed to become deflationary as a result of the EIP-1559 combustion mechanism, reducing the overall circulating supply. However, ETH supply continued to increase after the merger and became deflationary on Oct. 8, data shows. It happened because of high ETH gas costs burned by the XEN Crypto project.

Ethereum (ETH) offering after merging. Source: Ultrasound.money

In the past 7 days, XEN Crypto has burned 4,539.51 ETH, with a total of 16,954 ETH. Ethereum’s supply has declined by more than 6,000 ETH since the project goes live on October 8.

Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a significant period of time and is currently covering all the latest updates and developments in the crypto industry.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.





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