Ethereum News Today: Ethereum Surges 3.2% on Fed Rate Cut Hopes and $1 Billion ETF Inflows

Ethereum reached a price of $4,400 on August 12, driven by a combination of favorable U.S. inflation data and a surge in institutional demand for Ethereum-based products. The July Consumer Price Index (CPI) data showed a 2.7% year-over-year increase, slightly below the expected 2.8%, raising the probability of a September Federal Reserve rate cut to 82.5%. This macroeconomic relief supported risk-on sentiment and lifted Ethereum by 3.2% immediately after the data release, outperforming Bitcoin’s 3.1% rise in the same period [1].

The institutional buying wave accelerated following the CPI report, with U.S. spot Ethereum ETFs experiencing over $1 billion in net inflows on August 12. BlackRock’s ETHA ETF led the charge with a record $639 million in single-day inflows. Total assets under management across Ethereum ETFs have now reached $19.2 billion, reflecting a 58% increase over the past month. Given that ETFs currently hold approximately 3.3 million ETH—against a daily net issuance of about 8,000 ETH—this indicates a rapid absorption of supply by institutional investors [1].

Corporate adoption is also on the rise. Nasdaq-listed BitMine Immersion (BMNR) announced plans to raise $20 billion for Ethereum acquisitions, following 180 Life Sciences’ $349 million purchase earlier in the month. Public companies now control about 5% of Ethereum’s circulating supply, highlighting the growing role of corporate treasuries in Ethereum’s demand narrative. If BMNR’s plan is fully executed, it could remove 45 days’ worth of Ethereum issuance from the open market [1].

Technically, Ethereum has broken above the $4,300 resistance level, with the Relative Strength Index (RSI) near 66, indicating strong but not overbought momentum. The MACD remains in positive territory, reinforcing the bullish trend. Sustaining a level above $4,350 could pave the way for a push toward the all-time high near $4,800 [1].

With macroeconomic tailwinds, surging ETF demand, and corporate balance sheet allocations tightening supply, Ethereum’s rally appears well-supported. The market is closely watching for a potential September rate cut by the Federal Reserve, which could further fuel bullish momentum in the coming weeks [1].

Sources:

[1] "Ethereum’s 1.5-Year Resistance Breakout Could Ignite $7,000 Surge" - Brave New Coin

(https://bravenewcoin.com/insights/ethereum-eth-price-prediction-ethereums-1-5-year-resistance-breakout-could-ignite-7000-surge)