ETH Reclaims $1,900 Amid Slower Inflation and Record Staking Demand

Ethereum's price has reclaimed the $1,900 level after the July CPI data showed a slower-than-expected inflation rate of 3.4% year-over-year and core at 2.5%. The asset had slipped below this threshold on Tuesday as investors reduced risk ahead of the inflation data.

The recovery was driven by the market's positive reaction to the macro print, which delivered exactly what a levered risk asset needed. The headline CPI matched consensus, and traders shifted September FOMC pricing toward a hold from a 50-50 split.

The staking demand for Ethereum has hit an all-time high of 41.9 million ETH, one-third of the circulating supply, while the price has fallen from $3,400 in January to around $1,900. However, the thesis on Ethereum remains a supply story fighting a demand story, with the supply side winning on paper but losing on price.