Ethereum Surges Above $2,600 After CPI Low

Ethereum (CRYPTO: ETH) has broken through to $2,600 for the first time in seven months. This milestone comes after core CPI hit its lowest level in over five years.

The sudden surge was driven by a massive influx of capital into the crypto market. Bull Theory reported that $127 billion returned to the total crypto market cap within just 90 minutes following the CPI release. Bitcoin (CRYPTO: BTC) also surged above $79,000 as investors viewed the rate hike as a priced-in event rather than a new shock.

However, there is still caution from analysts regarding the long-term sustainability of this trend. Spot ETH ETFs have recorded net outflows of $19.30 million in the past week. It remains to be seen whether Friday's inflows will offset these losses and extend the ETF inflow streak to four consecutive weeks.

Rising to new highs, Ethereum has confirmed Michaël van de Poppe's prediction that it would approach his target of $2,740. Meanwhile, analysts are looking to key levels such as $2,670-$2,700 as resistance targets above the current breakout zone of $2,580-$2,600.