Ethereum Sees Major Upside Amid Cooling Inflation and Trade Optimism
Ether (ETH) surged 5.56% on June 11, climbing to a 10-day high of $2,873.46, after two major catalysts hit the global markets: a softer-than-expected U.S. Consumer Price Index (CPI) report and news of a tentative U.S.–China trade agreement. These macro developments have fueled a broader risk-on rally across digital and traditional asset classes.
“Ether has now gained nearly 12% this week, decisively breaking past the $2,800 resistance level on strong volume.”
Macro Factors: CPI and Trade Pact Drive Risk Appetite
The rally was initially sparked on Tuesday night when negotiators in London finalized a draft U.S.–China trade framework, set to reduce technology-related export curbs and resume China’s rare-earth shipments. Momentum strengthened further Wednesday morning after the U.S. Labor Department reported that May CPI rose just 0.1%, undercutting the 0.2% forecast.
“The softer CPI print increased expectations of a potential Fed rate cut, sending Treasury yields and the U.S. dollar lower.”
This double dose of optimism spurred a broad risk-asset bid, with Bitcoin, equities, and major altcoins all pushing higher. Ether’s spot volume ballooned to approximately 527,000 ETH, equivalent to $1.47 billion, underscoring heightened investor participation.
On-Chain and Institutional Flows Reinforce Bullish Sentiment
Adding to the bullish momentum is a record 34.65 million ETH staked, representing approximately 28.7% of total supply. Exchange-traded funds (ETFs) have now logged 16 consecutive days of inflows totaling $900 million, while futures open interest hit a new high above $21.7 billion.
“BlackRock’s reported $500 million ETH accumulation in just 10 days reflects growing institutional demand.”
These structural dynamics — constrained supply, increasing staking, and large-scale institutional accumulation — have created a strong foundation for sustained upward movement.
Technical Picture: $3K in Sight, With Support Below
Technically, Ether has formed a bullish up-channel since June 9, making a series of higher lows and a fresh higher high. The strongest volume candle of the day coincided with the CPI data, validating the breakout above $2,800.
- Support: $2,750–$2,760
- Resistance: $2,900, then $3,000
- Momentum: RSI above 60 suggests further upside before overbought levels trigger corrections
“A close above $2,900 could pave the way for a breakout toward the psychological $3,000 level.”