Ethereum Rebounds on Softer Inflation Data, But $2,500 Pullback Remains Possible

Ethereum has seen a rebound in value following the release of the Federal Reserve's preferred inflation measure, which came in below expectations.

The report showed that August's headline Personal Consumption Expenditures price index had annual inflation of 3.4%, approximately 0.3 percentage points below the consensus cited in the report.

This has eased concerns about another interest-rate increase, with the probability of a 25-basis-point hike at the next Federal Reserve meeting falling from 68% to 37%.

Ethereum rose by approximately 2.8% from its session low of $2,655 to $2,730 following the release, but has since dropped below $2,700 and is now trading around $2,680.

The bulls maintain a positive outlook for Ethereum, with some analysts anticipating further consolidation before a sustained move higher towards $3,400.