Ethereum Price Update: $2,700
Ethereum soared 9% on Tuesday, fueled by softer-than-anticipated US CPI data for April, reigniting optimism across the crypto market.
Ethereum Outshines Bitcoin, But ETH/BTC Faces Risks
Ethereum’s strong performance signals a notable shift in investor focus from Bitcoin to ETH. However, historical trends suggest the ETH/BTC ratio could face a potential pullback if past patterns repeat. A bullish flag pattern may solidify for ETH if it manages to convert the 200-day SMA into a support zone.
ETH Rebounds Strongly After CPI Data
On Tuesday, Ethereum staged an impressive recovery, climbing 9% after April’s US Consumer Price Index (CPI) data came in below expectations. The leading altcoin rebounded from the $2,400 mark, pushing its weekly gains to an impressive 50%. Sustained buying interest continues to drive ETH’s momentum, with analysts increasingly pointing to a market rotation favoring Ethereum over Bitcoin.
Ethereum Bulls Ride Weak CPI Wave
Ethereum surged 9%, extending its weekly gains to 50%, after the US Bureau of Labor Statistics (BLS) reported April inflation figures lower than forecasted. Headline CPI rose by just 0.2% month-on-month, missing estimates of 0.3%, and slowed to 2.3% annually—below the expected 2.4% and the lowest since February 2021. Core CPI, excluding food and energy, also grew by 0.2% monthly, undercutting projections of 0.3%, while remaining steady at 2.8% year-on-year.
The softer inflation numbers bolstered bullish sentiment in the crypto space, with growing expectations of a 25-basis-point rate cut by the Federal Reserve in September, according to the CME FedWatch Tool.
