Ethereum's price surged nearly 5% to reclaim the $1,850 resistance level, driven by softer-than-expected US Consumer Price Index (CPI) data for June. This inflation relief sparked a significant short squeeze, propelling ETH towards the psychological $2,000 mark. The breakout suggests renewed bullish momentum and could signal a broader market recovery if inflation continues to cool. Investors should monitor ETH's ability to sustain above $1,850 and target the $2,000 resistance as a key indicator for continued upside potential.
Cooling inflation data directly impacts Fed policy expectations, reducing pressure on interest rates and enhancing risk asset appeal. This CPI-driven ETH breakout signals a potential shift in macro sentiment, favoring crypto market upside and attracting institutional capital back into the space.
This event highlights crypto's strong correlation with macro data, particularly inflation and interest rate expectations. Risk-on sentiment, driven by economic relief, directly translates to immediate price action, confirming market sensitivity to monetary policy shifts.
Ethereum price has reclaimed the $1,850 resistance after softer-than-expected U.S. inflation data triggered a sharp short squeeze, putting the $2,000 level back into focus for traders. The second-largest cryptocurrency climbed nearly 5% on July 15 after June’s Consumer Price Index…