Ethereum breaks $1,850 after softer US inflation data

The price of Ethereum surged on July 15, climbing more than 5% to break above the $1,850 resistance level after a softer-than-expected U.S. inflation report eased investor concerns about aggressive Federal Reserve policy. The rally briefly pushed the cryptocurrency toward $1,900 and refocused trader attention on the key $2,000 psychological threshold.

The catalyst was the release of June's Consumer Price Index data, which showed a year-over-year increase of 3.5%, below market forecasts. The data prompted a sharp decline in the U.S. dollar and a drop in market-implied odds of a near-term Fed rate hike, creating favorable conditions for risk assets. The move triggered a broad-based crypto rally, but Ethereum notably outperformed Bitcoin over a 24-hour period.

The price surge was amplified by a significant liquidation event in derivatives markets. Data from analytics platforms showed approximately $300 million in leveraged short positions were liquidated across crypto markets within 24 hours, with Ethereum contracts representing over a third of that total. A dense cluster of these short positions was located between $1,800 and $1,850, and their forced buybacks accelerated...