Ethereum News Today: Ethereum Surges 6.95% as Crypto Rallies on Soft CPI Data and Fed Rate Cut Hopes

Generated by AI AgentCoin World
Wednesday, Aug 13, 2025 12:04 am ET1min read
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Aime RobotAime Summary

- Crypto markets surged as softer July CPI data boosted Fed rate-cut expectations, with Bitcoin up 0.47% and Ethereum rising 6.95% near record highs.

- Ethereum's 18% higher trading volume and 13.7% market dominance marked a nine-month high, contrasting Bitcoin's 58.8% share decline.

- Traditional markets mirrored gains, with S&P 500 and Nasdaq hitting records as CME FedWatch projected 94.3% September cut probability.

- Analysts forecast Ethereum reaching $6,000-$5,241, citing $3,350 support and $4,300 breakout, while crypto fear/greed index signaled rising investor confidence.

Cryptocurrencies rallied on Tuesday as softer-than-anticipated July consumer price index (CPI) data bolstered market expectations for a Federal Reserve rate cut in September.

Bitcoin
gained 0.47%, trading at $119,575.71 at 9:15 p.m. ET, while
Ethereum
surged more than 6.95% to $4,577.98, nearing all-time highs.
XRP
and
Dogecoin
also posted gains of 2.24% and 4.19%, respectively [1].

Ethereum's strong performance was highlighted by increased trading volume, a 18% rise, and its market dominance reaching a nine-month high of 13.7%. In contrast, Bitcoin's market share dipped to 58.8% [1]. The broader crypto market saw a 2.95% increase in the past 24 hours, pushing total market capitalization beyond $4 trillion [1].

The

optimism
was reflected in the Crypto Fear & Greed Index, which showed a rise in “greed” sentiment, indicating growing investor confidence. The market also saw over $480 million in liquidations, with bearish shorts accounting for $344 million of that figure [1].

Meanwhile, traditional markets mirrored the crypto rally. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed at record highs, with the CME FedWatch tool showing a 94.3% probability of a September rate cut, up from 85.9% the previous day [1].

Analysts have offered bullish forecasts for Ethereum. Arthur Azizov, founder of B2 Ventures, stated that Ethereum could reach $6,000 within this year or next, emphasizing the importance of holding the $3,350 support level. Another prominent trader, Ali Martinez, predicted a move to $5,241 now that Ethereum has broken through the $4,300 barrier [1].

The gains in crypto and stocks suggest a growing belief that the recent cooling in inflation data reduces the risk of aggressive rate hikes, potentially easing pressure on asset valuations. However, open interest in Bitcoin fell slightly by 0.14% in the past 24 hours, while Ethereum’s open interest rose sharply by 9.19%, reflecting diverging short-term positioning among traders [1].

Source: [1] Bitcoin Gains As CPI Comes In Cooler Than Expected; Ethereum, Dogecoin, XRP Also Surge: Analyst Sees ETH Reaching $6,000 (https://www.benzinga.com/crypto/cryptocurrency/25/08/47080539/bitcoin-gains-as-cpi-comes-in-cooler-than-expected-ethereum-dogecoin-xrp-also-surge-analyst-sees-eth-reaching-6000?utm_source=coingecko&utm_campaign=partner_feed&utm_medium=partner_feed&utm_content=site)