Ethereum rose 6.4% over the past 24 hours, climbing to $2,081.38 and outpacing the broader crypto market’s 4.44% increase. The move came amid softer U.S. inflation data, which printed at 2.4% against expectations of 2.5%, and renewed headlines on Brazil’s reserves. Analysts noted that short positions were squeezed as open interest climbed, pushing prices higher.
Despite the rally, sentiment remains in “extreme fear,” a setup that could see sharp reversals. Trading data showed Ethereum’s price movement was strongly correlated with the Russell 2000 ETF at 0.95, underscoring the macro-driven nature of the surge across risk assets. The total crypto market cap rose 4.44% in the same period, with correlations also evident with gold at 0.90. Ethereum’s market dominance edged up from 10.33% to 10.53%, while Bitcoin’s dominance held steady and smaller altcoins declined.
Analysts said this suggests capital rotated from minor tokens into Ethereum, reflecting traders’ preference for its relative stability and scale. The path of least resistance remains cautiously higher if macro support continues. A decisive break and close above $2,100 on rising volume would be needed to confirm bullish momentum. For now, Ethereum’s gains are seen as a function of a recovering macro environment for risk assets, with modest support from intra-crypto rotation.
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