Ethereum Bulls Charge Ahead on Softer CPI Data

$ETH +9% | Weekly Gain: +50%

Ethereum rallied nearly 9%, extending its weekly surge to an impressive 50%, following a cooler-than-expected U.S. inflation report for April.

According to the Bureau of Labor Statistics, headline CPI rose just 0.2% MoM and 2.3% YoY, both missing forecasts of 0.3% and 2.4%, respectively. It marks the lowest annual inflation since February 2021.

Meanwhile, core CPI — which excludes food and energy — also rose 0.2% MoM, below the 0.3% estimate, and held steady at 2.8% YoY.

This softer inflation print has fueled expectations of a Fed rate cut. The CME FedWatch Tool now shows a high probability of a 25 bps cut in September, injecting bullish momentum across crypto markets.

Even former President Donald Trump chimed in on Truth Social, urging the Fed to “lower rates like Europe and China have done.”

Ethereum responded swiftly, reclaiming the $2,600 level amid renewed buying from both retail and institutional investors.

On-chain activity confirms this momentum:

Abraxas Capital borrowed $240M USDT via Aave and withdrew 33,482 ETH from Binance in the past 24 hours alone. In total, they’ve accumulated over 211,000 ETH since Wednesday, according to Lookonchain.

Despite the buying spree, funding rates remain elevated and options lean slightly toward puts — a sign the move isn’t being fueled by extreme leverage or hype. Analysts at QCP Capital suggest this may signal a more sustainable breakout.

Ethereum has also outperformed Bitcoin for the first time in months. The ETH/BTC ratio surged from 0.018 to 0.025, a 30% gain in just one week — signaling a potential rotation back into ETH dominance.

Per Deribit data, trader sentiment is rising fast:

• Bets on ETH hitting $2,800 have jumped from 1% to 17%

• $3,000 strike calls rose from 0.5% to 9%

Still, it’s been a volatile ride. According to Coinglass, $126M in ETH futures were liquidated in the last 24 hours — with $99M in shorts caught off guard.