Ethereum Price Today: $2,700
- Ethereum surged 9% on Tuesday after lower-than-expected US CPI data for April reignited bullish momentum in the crypto market.
- Rotation from Bitcoin to Ethereum is evident, though historical patterns suggest caution for the ETH/BTC ratio.
- A bullish flag pattern could form if ETH converts the 200-day SMA into support.
Ethereum (ETH) rebounded sharply, climbing 9% following softer April Consumer Price Index (CPI) data in the US. The altcoin bounced from $2,400, extending weekly gains to 50% amid growing institutional and retail demand. Analysts note a potential shift in capital allocation from Bitcoin (BTC) to ETH.
Ethereum Bulls Seize Opportunity from Weak Inflation Data
Ethereum’s 9% rally amplified its weekly performance to +50% after April’s CPI missed expectations:
- Headline CPI: +0.2% monthly (vs. 0.3% forecast), slowing to 2.3% annually—lowest since February 2021.
- Core CPI: +0.2% monthly (vs. 0.3% forecast), steady at 2.8% annually.
The data bolstered bets on a Federal Reserve rate cut by September, with markets pricing in a 25-basis-point reduction. Ethereum reclaimed $2,600, supported by institutional inflows.
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Key Developments:
- Abraxas Capital withdrew 33,482 ETH from Binance, totaling 211,030 ETH acquired since last week.
- Funding rates remain moderate, indicating sustainable demand rather than speculation.
ETH/BTC Ratio Watch:
The ratio surged 30% (0.018 to 0.025) last week, signaling capital rotation. However, historical trends suggest potential pullbacks after such spikes.
Ethereum Price Forecast: Bullish Flag Pattern in Play
Ethereum’s technical setup hints at a bullish continuation:
- Support: Descending trendline near $2,400 aligns with a high-demand zone (63.76M ETH bought between $2,300–$2,400).
- Resistance: 200-day SMA at $2,544; breakout could target $2,850.
Indicators:
- RSI & Stochastic Oscillator remain overbought since May 8, signaling strong momentum but also correction risks.
- Liquidations: $126.21M in futures liquidations (78% shorts) vs. Bitcoin’s $46.67M.
Scenario Analysis:
- Bullish: Flip 200-day SMA to support → Rally to $2,850.
- Bearish: Close below $2,100 → Drop toward $1,688.
FAQs: Ethereum’s Price Surge Explained
Why did Ethereum price rise 9%?
Weak US CPI data renewed Fed rate-cut hopes, boosting crypto markets. ETH’s institutional demand amplified gains.
Is Ethereum outperforming Bitcoin?
Yes—the ETH/BTC ratio rose 30% last week, though historical pullbacks caution against over-optimism.
What’s next for ETH price?
A breakout above the 200-day SMA ($2,544) could confirm a bullish flag pattern, targeting $2,850.
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Key Takeaways
- Ethereum’s rally reflects macroeconomic shifts and institutional interest.
- Watch the ETH/BTC ratio and 200-day SMA for trend confirmation.
- Overbought indicators suggest potential consolidation before further upside.
Disclaimer: This content is for informational purposes only and not investment advice. Cryptocurrency markets are highly volatile; conduct independent research before trading.
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