After the latest inflation data in the United States were released, risk assets generally strengthened, and Ethereum also saw an upward trend. Coinpedia citing market data stated that Ethereum traded at $2,575.39, with a 24-hour increase of 5.7%. Bitcoin, gold, and U.S. stocks also saw gains simultaneously, indicating that funds are re-pricing based on the inflation and interest rate trends.

Core CPI rebound

The main factor driving an improvement in market sentiment is the continued decline of the core CPI. Excluding food and energy, the core CPI is at 2.4%, marking the lowest level in over five years. Reports indicate that pressure on housing, services, and daily necessities prices has eased, leading the market to believe that underlying inflation in the United States is still slowing down.

Against this backdrop, some funds are betting that the Federal Reserve has room to keep interest rates unchanged, or even move towards interest rate cuts in the future. As a result, risk assets have generally rebounded, and Ethereum has also benefited from this resurgence in risk appetite.

Oil prices drive up the overall CPI

At the same time, the overall CPI remains at 3.4%. Reports suggest that this reading is mainly driven by rising oil prices, which in turn are related to the supply shocks caused by the war in Iran. In other words, the market tends to view this portion of inflation as an energy factor, rather than a full resurgence in demand.

This distinction affects asset pricing. If inflationary pressures mainly stem from energy supply rather than a general increase in demand from residents and businesses, markets are usually more willing to continue holding high-risk assets.

Service industry readings higher than expected

However, the interest rate market has not fully accepted the judgment that "inflation has significantly cooled down." Reports mention that the monthly calculated "super core" service inflation has risen to 0.3%, higher than the market's expectation of 0.2%. This indicator excludes energy and housing costs, and is thus more reflective of real demand pressures.

For this very reason, market bets on the Federal Reserve continuing to raise interest rates once rose to 85%. This means that, despite Ethereum and other risky assets experiencing short-term gains, there is still a clear divergence of opinion within the market regarding the future direction of interest rates.

Overall, Ethereum's recent rise is not driven by a single crypto factor, but rather the result of a coordinated rebound in risky assets following the release of macroeconomic data. Moving forward, the market will continue to monitor changes in U.S. service sector inflation and energy prices to determine whether this rebound can continue.