Ethereum Breaks $2,700 Barrier Amid Softer Inflation Data

Ethereum's price surged above $2,700 on September 30 after the release of US inflation data that came in lower than expected. The Personal Consumption Expenditures (PCE) index reading for August was 3.4%, below the forecasted 3.7%. This decrease suggests inflation is cooling, even though it remains above the Federal Reserve's 2% target.

The softer inflation print changed expectations for the Federal Reserve's next move. The odds of a 25 basis point rate hike at the October 28 meeting dropped from 67% to 34%, according to the CME FedWatch Tool. This decrease in rate hike odds is generally seen as positive for risk assets like Ethereum.

Analyst Alejandro Arrieche of FXEmpire noted that most traders no longer expect a hike at the next FOMC meeting. Analyst Ash Crypto wrote on X that $ETH posted its highest monthly close of 2026 and its best third quarter in Ethereum's history, calling it 'absolutely massive.'

Ethereum ETFs saw $2.81 million in outflows on September 29, ending a seven-day streak of inflows. However, Ethereum ETFs have still brought in $892 million during September, the third straight month of net inflows.