Ethereum Surges 9% to $1,500 on Positive Inflation Report and Tariff Pause

Ethereum's price surged by 9% within a 24-hour period, pushing it above the $1,500 mark. This significant increase was driven by a positive inflation report and the U.S. decision to pause tariffs, which collectively contributed to a broader rebound in the cryptocurrency market. The positive inflation report likely instilled confidence among investors, suggesting a more stable economic environment. Additionally, the pause in tariffs reduced uncertainty and potential economic disruptions, further boosting investor sentiment.

The price of Ethereum had previously declined from a high of $1,682 to $1,540, testing support levels near $1,500. This decline was part of a broader market correction that saw Ethereum drop by 6% from its peak. However, the subsequent rebound indicated that bullish forces were regaining control, as the price surged past the $1,500 threshold. The support level at $1,522 was crucial in this context, as holding above this point would signal continued bullish momentum.

The broader cryptocurrency market also saw significant gains, with other major cryptocurrencies such as Ripple (XRP) and Solana (SOL) experiencing notable increases. Ripple (XRP) surged to $2, while Solana (SOL) rose by 6.8% to $115. This broader market rally was driven by the positive economic indicators and the reduction in trade tensions, which collectively lifted investor confidence across the cryptocurrency sector.

The surge in Ethereum's price was not an isolated event but part of a broader market trend. Bitcoin, for instance, saw an 8.25% increase in a single day, while Ethereum broke through $1,680 with an increase of nearly 14.6%. Other altcoins also experienced significant gains, contributing to a 9% overall increase in the market. This coordinated rally suggested that the positive economic news had a widespread impact on the cryptocurrency market, benefiting both major coins and smaller altcoins.

The rebound in Ethereum's price was also influenced by the broader market sentiment, which had been dampened by previous economic uncertainties. The pause in tariffs and the positive inflation report provided a much-needed boost to investor confidence, leading to a surge in demand for Ethereum and other cryptocurrencies. This increased demand, coupled with the technical support levels, helped drive the price above $1,500.

Despite the rebound, investors continue to pull out of crypto ETFs—Ethereum funds saw $11.2 million in outflows, even though ETH outperformed Bitcoin with an 8.1% gain. The overall crypto market is recovering, but institutional confidence remains shaky. The sentiment around Ethereum has turned increasingly negative. Since December 2021, ETH has dropped over 77% in value against Bitcoin and still trades far below its all-time high in dollars. Many smaller altcoins have outperformed it, leading to frequent comparisons with low-value “shitcoins.” This consistent underperformance has left long-term holders frustrated, and even some institutional investors have started doubting Ethereum’s ability to keep pace with the rapidly changing crypto market.

The market’s frustration with Ethereum comes down to a few key issues. While its move to faster Layer-2 networks was a smart upgrade, it ended up splitting user activity. On top of that, Ethereum’s upgrades have been slow and complicated, making it hard for regular investors to keep up, especially compared to Bitcoin’s simplicity or Solana’s speed. With unclear regulations and no strong story to tell, Ethereum now feels like it’s stuck in the middle, not leading the way in innovation and not seen as the safest bet either.

Despite the criticism, Ethereum has continued to grow behind the scenes. It switched to Proof-of-Stake in 2022, cutting energy use and reducing new ETH supply. In 2023, it allowed users to withdraw staked ETH, and more upgrades are coming to make transactions on Layer-2 even cheaper. However, Ethereum still leads in DeFi and on-chain identity and gained more trust from institutions with the launch of Ethereum Futures ETFs. Liquid staking platforms like Lido and cbETH have also helped expand the ecosystem, showing that Ethereum’s foundation remains strong for the long term.

Ethereum is still the 2nd largest crypto, trading around $1,540 well ahead of Tether. While many people are feeling negative about it, that kind of extreme bearish mood often shows a trend reversal could be near. Ethereum might not be making big moves right now, but it’s steadily improving. With all the work being done behind the scenes, it could be one of the most underrated assets as we move into 2025.