Ethereum posted a strong 24-hour performance, climbing approximately 6.4 percent to trade at $2,081.38, outperforming the broader cryptocurrency market, which advanced by 4.44 percent over the same period.
The rally unfolded against the backdrop of improving macroeconomic signals and renewed appetite for risk assets.
Softer U.S. Inflation Sparks Relief Across Risk Assets
Part of the momentum stemmed from fresh U.S. inflation data, which came in at 2.4 percent — slightly below the 2.5 percent consensus expectation. The lower-than-anticipated reading eased pressure on financial markets and supported renewed investor positioning in growth-sensitive assets.
Additional headlines regarding Brazil’s reserves also contributed to improved sentiment.
Short positions in Ethereum were forced to unwind as prices moved higher, triggering a squeeze that pushed open interest upward and amplified upward momentum. Despite the rebound, overall sentiment remains categorized as “extreme fear,” suggesting heightened volatility risks persist.
Market analysts caution that in such sentiment conditions, price movements can reverse abruptly.
Strong Correlation With Broader Equity Markets
Trading metrics show Ethereum exhibiting a 0.95 correlation with the iShares Russell 2000 ETF, underscoring the extent to which macroeconomic forces are driving digital asset performance.
The broader crypto market capitalization expanded by 4.44 percent within 24 hours. Ethereum also demonstrated a 0.90 correlation with gold, reflecting synchronized movement across diverse asset classes.
The strength in Ethereum coincided with renewed investor flows into altcoins as Bitcoin struggled to maintain the $70,000 price threshold.
Shift in Crypto Market Dominance
Ethereum’s market dominance edged higher from 10.33 percent to 10.53 percent over the past 24 hours. In contrast, Bitcoin’s dominance remained largely unchanged, while the collective share of smaller tokens declined.
The data suggests capital rotation from smaller altcoins into Ethereum, as traders favored its relative liquidity, size, and perceived stability amid a broader market rebound.
Crypto analysts argue that the move appears primarily macro-driven rather than tied to a specific Ethereum network development.
Technical Outlook
From a technical perspective, analysts suggest that sustained bullish confirmation would require a decisive break and daily close above the $2,100 resistance level on increasing volume.
While the short-term trajectory appears cautiously upward if macroeconomic support continues, market fragility remains evident. The prevailing environment suggests that gains could extend — but only if supportive economic signals persist.
Ethereum’s advance therefore reflects a recovering macro backdrop for risk assets, complemented by moderate intra-crypto capital rotation rather than a coin-specific catalyst.
