ETH price hit $3,100, backed by a favorable court ruling and increased network activity.
Ether (ETH) price rose by 5.5% on May 17, nearing $3,100 for the first time in ten days. Analysts attributed this rally to a decrease in demand for fixed-income instruments following stagnant U.S. retail sales data in April. This data increased the market's expectation of a potential interest rate cut by the U.S. Federal Reserve (Fed) to boost the economy.
Expansionary measures by the central bank are typically seen as bullish for risk-on markets, whether due to an increased monetary supply or reduced credit costs for businesses and individuals. Investors sought exposure to scarce assets, including cryptocurrencies, leading to gold reaching $2,410, just 0.8% below its all-time high.
Ether’s surge was also driven by a U.S. Department of Justice (DoJ) indictment unsealed on May 15. The indictment accused two individuals of wire fraud and money laundering by manipulating the Ethereum blockchain. The document stated that “Ethereum is a decentralized blockchain… without the need for a trusted intermediary” and added, “No central actor runs the Ethereum Network.”
