Ethereum ($ETH

) – Eyeing $5K but Inflation Slows the Charge

Ethereum entered today riding high, trading near $4,800—its strongest level since late 2021—and looking ready to challenge the $5,000 psychological barrier. The climb has been fueled by DeFi expansion, NFT market recovery, and a crypto-friendly U.S. policy wave that has supercharged institutional interest.

For weeks, $ETH has benefited from the same bullish drivers pushing Bitcoin: the Federal Reserve’s potential September rate cut, green-lit crypto retirement investments, and a regulatory retreat from the SEC on defining ETH as a security. Institutional funds have ramped up exposure, with analysts saying Ethereum’s utility-driven demand could push it to $6,000 in the medium term.

But today, the rally hit turbulence. 📉 A hotter-than-expected U.S. Producer Price Index report spooked risk markets, knocking ETH down to $4,577 in afternoon trading. Short-term traders quickly took profits, and leveraged long positions saw heavy liquidations across exchanges.

Despite the setback, Ethereum’s fundamentals remain solid. Layer 2 adoption continues to surge, gas fees have stabilized after the Dencun upgrade, and major tech firms are building tokenized applications on the Ethereum network. For institutions, this isn’t just another coin—it’s digital infrastructure.

Bulls now watch two key levels: $4,500 as immediate support, and $5,000 as the breakout point. If macro conditions calm and the Fed confirms rate cuts, $ETH could be the first major altcoin to set new all-time highs before year-end.

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