Ethereum’s recent price rally, which saw it reach $3,000, could be at risk as the cryptocurrency turns inflationary following the Dencon upgrade. The price of Ethereum managed to increase by 1.03% during the low-volatility Sunday trading session, bringing it to a current price of $2,438. This upward movement in the market comes as a recovery from the previous week’s selling pressure, which was influenced by escalating tensions between Israel and Iran.
However, there are concerns that the correction trend may continue, especially as Ethereum’s Layer 1 (L1) fees have reached an all-time low. This has sparked speculation that the previous deflationary trend could be reversed, leading to potential inflationary pressure on the Ethereum price. Traders and investors will closely monitor these developments to determine the future trajectory of Ethereum’s value.