Ether (ETH) has been on a tear, surging toward the $3,000 mark amid a rare confluence of geopolitical and economic developments. Late Tuesday, news emerged of a draft U.S.–China trade framework, a potential game-changer for international trade dynamics. Combined with a softer-than-expected U.S. Consumer Price Index (CPI) report, the cryptocurrency market is abuzz with activity, driving ETH prices upward.
A Trade Pact in the Making
In a surprise turn of events, negotiators in London have reportedly agreed on a draft trade framework between the U.S. and China. While still pending formal approval from both governments, this agreement could reshape the trade landscape. The preliminary deal suggests that Beijing will resume rare-earth exports, crucial for many technology industries, while Washington plans to ease restrictions on advanced-tech sales to China. Former U.S. President Donald Trump took to Truth Social early Wednesday to announce, “OUR DEAL WITH CHINA IS DONE,” pending the nod from both him and President Xi Jinping. According to Trump, this accord includes maintaining U.S. tariffs at 55% on Chinese imports while Beijing will front-load supplies of rare-earth materials.
The speculation of a potential thaw in trade tensions has sparked a risk-on sentiment across global markets. Equity futures strengthened, Bitcoin saw a slight uptick, and Ether, riding the wave, pushed past $2,780. This renewed optimism is not just about lifting tariffs; it’s a signal that the two economic giants might be finding common ground after years of friction.
Inflation Eases, Ether Gains
The cryptocurrency market’s exuberance was further fueled by the latest CPI data, which reported a modest 0.1% month-over-month rise in both headline and core inflation for May. This figure undercut economists’ predictions of a 0.2% increase, suggesting that inflationary pressures might be cooling off. The prospect of the Federal Reserve potentially lowering interest rates later this year sent Treasury yields and the dollar on a downward spiral, while equities and cryptocurrencies, including Ether, extended their gains.
According to CoinDesk Research’s technical analysis, Ether reached an intraday high of $2,873.46, bolstered by a surge in trading volume—approximately 527,000 coins, or about $1.47 billion. “The current macro environment is quite supportive for risk assets like Ether,” said Sarah Liu, a senior analyst at Blockchain Insights. “A combination of easing inflation and potential rate cuts by the Fed is music to the ears of crypto investors.” This aligns with recent market trends, as detailed in our article on how Ether is more favored by traders as volatility against Bitcoin hits highest since FTX crash.
Institutional Momentum and Technical Outlook
Beyond the immediate market gyrations, structural factors continue to support Ether’s upward trajectory. Staked ETH has climbed to an unprecedented 34.65 million tokens, accounting for roughly 28.7% of the total supply. Meanwhile, exchange-traded funds have witnessed a 16-day streak of inflows nearing $900 million, highlighting sustained institutional interest. Notably, BlackRock’s $500 million accumulation over the past ten days underscores a broader theme of growing mainstream acceptance. As explored in our recent coverage, one Ether trader bets millions on ETH blasting above $3.4K by June-end, reflecting high confidence in its continued ascent.
Traders are now eyeing a pivotal close above $2,900, which could pave the way for Ether to challenge the psychological $3,000 threshold. However, caution remains in the air, with some analysts warning of potential resistance near the $3,120 level. “The market is in a delicate balance,” noted crypto strategist Tom Reed. “While the momentum is there, any adverse news could prompt a pullback toward the $2,750–$2,760 support zone.”
Looking Ahead
As Ether edges closer to $3,000, investors and analysts alike are keeping a watchful eye on both the geopolitical and economic landscapes. The proposed U.S.–China trade pact, if finalized, could have sweeping implications for global markets, potentially ushering in a new era of trade relations. Meanwhile, the crypto community is keenly observing the Federal Reserve’s next moves, as any indication of policy shifts could impact asset prices.
In this swirling mix of anticipation and caution, one thing is clear: Ether’s journey is far from over. Whether it can maintain its upward momentum or encounter headwinds will depend on a confluence of factors—many of which remain uncertain. For now, though, the crypto world is watching closely, ready to ride the waves or brace for the storm, as the case may be.
Source
This article is based on: Ether Surges Toward $3K on Tentative U.S.–China Trade Pact and Soft U.S. CPI Report
Further Reading
Deepen your understanding with these related articles:
- Trio of Soft Economic Reports Boost Fed Rate Cut Odds, but What About Bitcoin?
- Bitcoin Struggles as Hang Seng Cheers U.S.-China Trade Talks; U.S. Inflation Eyed
- Why Bitcoin and Ethereum ETF Investments Are Diverging
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
