Ethereum (ETH) Price Soars Past $2,600 Despite Federal Reserve Rate Hike Concerns

The immediate impact is bullish for ETHUSD but vulnerable to a macro-driven reversal.

Ethereum’s ability to rally despite a hotter-than-expected core CPI component suggests that crypto-specific demand temporarily outweighed the usual negative effect of higher interest-rate expectations. The reported $216.41 million of U.S. Ethereum ETF inflows, particularly strong demand for BlackRock’s ETHA, provides evidence of institutional buying pressure rather than a purely retail-driven move.

However, the inflation data remains a material headwind. Core CPI rising 0.3% month-on-month versus an expected 0.2% reportedly increased expectations of a 25-basis-point Federal Reserve hike at the September 16 meeting. Higher expected rates can support the dollar, raise the discount rate applied to risk assets, and reduce liquidity available for speculative crypto exposure. ETH’s resilience therefore reflects strong positioning and demand, not a disappearance of the macro risk.

The rally also appears partly amplified by positioning: approximately $216 million in short liquidations occurred while ETH open interest fell by about 1.5 million ETH. That combination is supportive in the short term because forced covering accelerates upside, but it can also mean that part of the move was a squeeze rather than sustained new leverage. Further gains would require continued spot or ETF demand after the short-covering impulse fades.

Technically, the reported breakout improves the medium-term structure, but the $2,700–$2,800 region is identified as a substantial prior supply zone. Failure to establish acceptance above that area could produce profit-taking or a return toward the reported support near $2,431. A sustained hold above the breakout region would strengthen the case that capital is rotating into ETH despite tighter-policy expectations.

Trader focus:

the key catalysts are the September 16 Federal Reserve decision and guidance, Treasury yields and the U.S. dollar, daily Ethereum ETF flows, ETH open interest, and whether ETF demand persists after the liquidation-driven rally. The bias is constructive, but the setup remains mixed: crypto-specific flows are bullish, while monetary-policy expectations are bearish.