Bitcoin, Ethereum, Dogecoin Slightly Up Ahead Of Inflation Data Release: Analyst Says 'Pretty Damn Clear' That ETH Could Rally Towards $2,500

Major cryptocurrencies traded in slightly positive territory on Tuesday evening as investors eagerly await Wednesday’s Consumer Price Index (CPI). 

What Happened:  This upcoming release, marking the first significant inflation data since mid-June, has the potential to determine whether the range-bound trading pattern continues.

This year has been a strong one for Bitcoin, with prices soaring 84% year to date. However, a closer look at the month-to-month data reveals that much of the gains were consolidated during the winter months. Specifically, January and March boasted average daily returns of 1.11% and 0.73% respectively. 

June also demonstrated robust performance, with an average daily gain of 0.41%, largely fueled by BlackRock’s spot ETF announcement. On the other hand, February and April were relatively stagnant in terms of Bitcoin’s performance, while May stood out as the only month with negative returns this year.

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At the time of writing, the global crypto market capitalization stood at $1.19 trillion, an increase of 0.19% over the last day. 

U.S. stocks showed gains on Tuesday following a three-session decline, with the major averages rebounding. 

The S&P 500 recorded a 0.67% increase, while the Nasdaq Composite, which focuses on technology stocks, saw a gain of 0.55%.

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Analyst Notes: "The others chart for #Crypto is still facing depression. This means, the best opportunities to gather your positions is in that phase before we’ll be taking out the previous lower highs and start rallying into the bull.With ETF’s. With more institutional adoption," wrote crypto trader Michael Van de Poppe.

According to pseudonymous trader Dontells, the current consolidation phase of ETH at its current prices could potentially result in a breakout. Dontells suggests that the resistance at play should ideally lead to a downward movement, which has happened a few times already but without significant impact. 

"Bitcoin should move soon. Otherwise, it's going to be not nice. And then I look at ETH, if this stays (like) this for two, three, four more weeks that resistance should be cooked."

The trader adds that if ETH manages to rise above $1,935, it could trigger a rapid rally, potentially taking ETH to a level last witnessed in May 2022, before the collapse of the Terra Classic (LUNC) ecosystem. "To the upside, we close above $1,935, it seems pretty damn clear that we're going to go to $2,500. There's pretty much just empty air… Given that we've stuck around the $2,000 handle so much just seems sensible to go up quite quickly if we do get through it."

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