5 min read - BTC, ETH 0.8% and 1.5% respectively
- US CPI eased in July; PPI inflation is up next
- Fidelity filed with the SEC to stake its ETH ETF
- ETH/USDT technical analysis
The crypto market is trading under pressure, with Bitcoin easing back to 63.5K, while Ethereum has fallen away from 1,900 despite U.S. inflation data easing and reducing expectations for a September Fed rate hike.
Bitcoin trades 0.8% lower over the past 24 hours, while Ethereum has dropped 1.5% across the same period.
Inflation data dampens Fed rate hike expectations
July CPI came in at 3.4% annually, down from 3.5% in June, while core inflation eased to 2.5% from 2.6%. Following the data, expectations for a September rate hike fell to 40%, down from 55% last week, according to the CME FedWatch tool.
U.S. stocks rallied following the data, with the S&P 500 rising 0.2% while the tech-heavy Nasdaq gained 0.5% across the session. U.S. futures are also pointing to a stronger open.
However, those gains have not been reflected in the crypto market. Bitcoin and Ethereum are both falling despite the softer inflation data, suggesting that the crypto market is currently being driven by factors beyond the broader macro backdrop.
Attention will now turn to PPI inflation data, which is expected to show wholesale inflation cooling to 4.9% year-on-year from 5.5%.
Cooler-than-expected data could see markets reduce Fed rate hike expectations further, which could offer some support to Bitcoin, Ethereum and other cryptocurrencies. However, as seen in yesterday’s market reaction, the impact could be limited if crypto-specific selling pressure remains.
ETH ETF Demand Rises on Fidelity Staking Filing
Elsewhere, news that Fidelity has filed with the Securities and Exchange Commission to add staking to its ETH ETF could offer some support.
The filing notes that the asset manager could stake up to 100% of the fund, which has $903 million in net assets, according to SoSoValue data.
Fidelity would retain 85% of the staking rewards, with the remaining 15% going to custodians and sponsors.
The news appears to have increased demand for ETH ETFs, with ETH ETFs being the only crypto ETFs to record net inflows on August 12, while Bitcoin ETFs recorded $61 million in outflows.
The filing comes as Ethereum staking reaches an all-time high, with 34% of the total ETH supply now staked.
The high staking ratio has also led to calls for Ethereum to undergo the proposed EIP-8362 upgrade. This would eliminate staking rewards if the amount of ETH staked surpassed 50% of total supply.
Unsurprisingly, the proposal has received significant backlash, highlighting the debate around how much of Ethereum’s supply should ultimately be locked up through staking.
Ethereum technical analysis
Having recovered from the 1,510, the 2026 low, ETH has been trading in a holding pattern since mid-July, capped on the upside by 1950 and on the downside by 1830. Within this range, the price is trading between the 50 and the 100 EMA, and the RSI is neutral, highlighting a lack of direction.
Buyers would need to rise above the 100 EMA at 1930 and above 1950 resistance to break out to the upside, exposing the 200 EMA at 2135.
Sellers would need to take out the 50 EMA at 1,865 and the support at 1,830 to break out to the downside, opening the door to 1,600 and 1,510, the 2026 low.
Trading involves risk.
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