Ethereum ETF Inflows Lose Momentum as Market Eyes Inflation Data

Ethereum has been trading near the upper end of its $2,370, $2,550 range, but institutional demand through ETFs has lost momentum. The U.S. spot Ethereum ETFs saw a significant slowdown in net inflows, dropping by roughly 73% to $218.4 million for the August 31, September 4 week.

The previous week's record of $824.42 million in net inflows is a stark contrast to the current pace of demand. Institutional investors remain positive, but their influence has waned compared to late August. The market-implied probability of a September Fed rate hike rose to around 58-60% following the strong jobs report.

The upcoming U.S. inflation data on September 11 could be the catalyst Ethereum needs to break out of its current range. A hotter-than-expected CPI reading could push expectations toward tightening and put pressure on crypto assets. If buyers fail to clear $2,550, attention would shift toward $2,370.

A sustained move below this support level would open the way toward $2,200. The Ethereum price needs to establish itself beyond either boundary of the consolidation to confirm the next short-term move. A daily close above $2,550 would increase the probability of further upside toward the next liquidity zone at $2,600, $2,700.