Ethereum (ETH) breaks resistance, surging above $4,400 following the release of the U.S. inflation report. The softening July CPI ignited optimism across markets, triggering bullish momentum that left bearish trader reevaluating their positions.
Inflation Report Overview
The U.S. Consumer Price Index (CPI) rose 2.7% year-over-year in July—slightly below the 2.8% forecast, while Core CPI climbed 3.1%, nudging market expectations for a Federal Reserve rate cut in September upward.
Ethereum Price Surge
ETH immediately responded with a 3.2% jump, pushing it past the $4,400 mark—a milestone last seen in December 2021.
Market Reaction Across Crypto
- Bitcoin also moved higher, with shares and broader risk assets following suit.
- The entire crypto market cap expanded swiftly, demonstrating surging risk-on sentiment.
Why Inflation Data Boosted ETH
Below-consensus inflation is acting as stimulus to immediate Fed easing. An environment that is accommodating to such liquidity-friendly investments is biased toward growth assets – and Ethereum with its staking payments and DeFi exposure is already very appealing.
Bearish Liquidations & Short Squeeze
Over $40 million in ETH short positions were liquidated in a single hour—intensifying the rally and squeezing pessimistic traders.
Analyst & Expert Sentiment
- Tom Lee was upping his Ethereum price prediction, estimating prices of between 7,000 and 15,000 dollars by the end of the year because of the increased institutional demand and adoption.
- Technical pointers show that ETH is at our doorstep(pre) to cross its 200-day moving average, depicting power above panic-stricken pandemonium.
What’s Next for Ethereum
- The next critical resistance lies at $4,500—breakout above this could open paths toward prior highs near $4,878.
- Upcoming macro events—like next CPI, PPI figures, and Fed meetings—will steer this next phase. Ethereum-specific catalysts like DeFi growth, RWA tokenization, and staking upgrades also offer bullish tailwinds.
Conclusion
This is more than a price milestone the rise of Ethereum above $4400 is indicating greater institutional belief in crypto as an asset that responds to macro conditions. With economic clarity nearing further, the ETH proves to be a speculative and utilitarian play indeed one to keep an eye on.