Non-yielding crypto assets become less attractive when interest rates rise. If the CPI data is hotter than expected, the Fed could raise rates in September, making bonds more competitive than Ethereum.
ETH has retreated below $1,900, its lowest level in days. Key support zones sit at $1,850, $1,800, and $1,700. A break below $1,800 could trigger a deeper selloff toward $1,700 if CPI is worse than expected.
Headline inflation is at 5.1%, well above the Fed's 3% target. If the CPI print comes in hot, outflows could accelerate. A softer print might reverse the selling and attract buyers back to Ethereum.
Soft CPI: ETH bounces to $1,950+. Hot CPI: ETH tests $1,700. The move is likely sharp because institutions move in herds—outflows or inflows accelerate quickly once direction is set.
Wait for CPI confirmation before adding to Ethereum positions. Risk-aware traders should place stop losses just below $1,800. A clean break above $1,950 signals strength and could be a buy signal.
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