Mapping Ethereum’s price reaction to December’s CPI data

• Ethereum faces heightened volatility following the newest CPI knowledge, sparking market hypothesis
• In mild of the CPI knowledge announcement, ETH Open Curiosity spiked to over $6 billion

The newest U.S. Consumer Price Index (CPI) report indicated a 0.4% hike in December, bringing the annual inflation fee to 2.9%. This uptick, primarily pushed by rising vitality prices, has important implications for monetary markets, together with cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

Market reactions to CPI knowledge

Following the CPI launch, Bitcoin’s value rose by 4.12% to roughly $100,510, reflecting investor optimism about potential Federal Reserve rate of interest cuts. Ethereum additionally noticed features within the final buying and selling session, with its value appreciating by over 7% to round $3,451.

These actions prompt that cryptocurrencies are responding positively to inflation knowledge as a consequence of their enchantment as various property in inflationary environments.

Liquidation dynamics post-CPI launch

The full liquidation chart from the final buying and selling session revealed a liquidation surge following the CPI announcement. An evaluation of the chart confirmed that liquidations have been nearly $330 million.

Ethereum, particularly, noticed important liquidation exercise – An indication of heightened market volatility and fast shifts in investor positions. The truth is, liquidations have been value over $67 million.

Supply: Coinglass

Moreover, the market noticed extra brief liquidations, with over $223 million in recorded quantity.

This development underscores the sensitivity of those property to macroeconomic indicators and the speculative nature of its market.

Ethereum Open Curiosity evaluation

Ethereum‘s Open Curiosity (OI) chart highlighted a notable hike in OI following the CPI knowledge launch. Evaluation of the OI knowledge confirmed that it spiked to round $6.5 billion within the final buying and selling session.

Supply: CryptoQuant

This uptick prompt that extra capital has been getting into ETH’s Futures markets, reflecting rising investor curiosity and potential expectations of future value actions. Value noting, nonetheless, {that a} excessive OI may also point out larger leverage. This will result in larger volatility.

Ethereum’s value outlook

Ethereum’s value motion revealed a compelling technical setup, with the 50-day transferring common at $3,562.47 sustaining a wholesome hole above the 200-day MA at $2,980.39. The MACD indicator readings (0.53, -55.72, -56.25) prompt that momentum is trying to shift, regardless that the present construction stays fairly delicate.

Supply: TradingView

The altcoin’s newest value motion, influenced by CPI knowledge exhibiting a 0.4% December improve, has pushed ETH to check important resistance ranges. The important thing assist zone at $3,200 is now essential for sustaining the prevailing market construction, whereas the $3,500 zone represents speedy resistance.

– Learn Ethereum (ETH) Value Prediction 2025-26

Ethereum’s response to those macro catalysts might set the tone for its near-term value motion. Whereas the derivatives market has been exhibiting indicators of elevated curiosity, the balanced liquidation patterns recommend a extra mature market response to financial knowledge, when in comparison with earlier cycles.