Ethereum (ETH) climbed to $4,400 on August 12, marking a 21% weekly gain and extending its recent outperformance over Bitcoin.
The move came as U.S. inflation data boosted expectations for a September Federal Reserve rate cut and institutional demand for ETH ETFs hit record highs.
The July Consumer Price Index (CPI) rose 2.7% year-over-year, slightly below the 2.8% forecast, lifting the probability of a September rate cut to 82.5%. ETH jumped 3.2% immediately after the release, outpacing Bitcoin’s 3.1% advance in the same period. Lower inflation typically eases monetary policy pressure, making yield-bearing assets like staked ETH more attractive to investors.
Institutional Inflows Hit Record Levels
U.S. spot Ethereum ETFs saw over $1 billion in net inflows on August 12, led by BlackRock’s ETHA product with a record $639 million single-day haul.
Total ETH ETF assets under management have surged to $19.2 billion, representing a 58% increase in the past month. With just 3.3 million ETH held across all ETFs and post-EIP-1559 net issuance at roughly 8,000 ETH per day, institutional buying is absorbing supply at a rapid pace.
Corporate Treasuries Accelerate ETH Accumulation
Corporate adoption is also intensifying. Nasdaq-listed BitMine Immersion (BMNR) unveiled plans to raise $20 billion for ETH acquisitions, following 180 Life Sciences’ $349 million purchase earlier this month.
Public companies now control about 5% of Ethereum’s circulating supply, positioning ETH as both a yield-generating growth asset and a balance sheet hedge. If executed, BMNR’s plan alone could remove 45 days’ worth of ETH issuance from the open market.
Technical Momentum Supports Upside
On the technical front, ETH’s price has broken above the $4,300 resistance level, with the Relative Strength Index (RSI) hovering near 66, signaling strong but not yet overbought momentum. The MACD remains in positive territory, supporting the bullish trend. Sustaining above $4,350 could open the door for a push toward the all-time high region near $4,800.
With macroeconomic tailwinds, surging ETF demand, and corporate balance sheet allocations tightening supply, Ethereum’s rally could extend into the coming weeks—especially if the Federal Reserve delivers the expected rate cut in September.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/ethereum-price-hits-4400-on-cpi-data-and-surging-institutional-demand/