Ethereum Price Takes a Hit as Selling Pressure Rises Amid Inflation Data Loon

The Ethereum price has seen a slight decline due to increased selling pressure across exchanges in August. According to CryptoQuant data, the weekly Exchange Netflow has been rising since July and spiked higher on August 10th. This coincided with ETH's sharp 3% price drop from $1920 to $1875.

The market is awaiting U.S. inflation data (CPI) on August 12th, which could impact the Fed's next move and Ethereum's price in turn. Cooler inflation data might raise the odds of another Fed rate cut, potentially benefiting ETH. However, higher inflation figures would reinforce ongoing Fed rate hike fears.

Institutional demand for Ethereum has eased slightly ahead of U.S. inflation data and rising oil prices. The U.S. spot ETH ETFs saw $14.59 million in daily net outflows on August 10th, breaking its recent four days of consecutive outflows.