Crypto Traders Brace for CPI as Bitcoin and Ethereum Hover at Critical Levels

All eyes are on the upcoming U.S. CPI release, a data point that could set the tone for risk sentiment across global markets. For digital assets, the stakes are particularly high: a stronger-than-expected inflation print may weigh on Bitcoin and Ethereum, while a softer reading could spark another leg higher.

Ethereum Holds Key Support

Ethereum continues to consolidate after its recent rally, trading just above $4,150. The sequence of higher highs and higher lows suggests the short-term trend remains constructive, but momentum looks fragile. A clean break below $4,100 could signal that buyers are losing control, leaving ETH vulnerable to a sharper pullback. Conversely, sustained strength above current levels would keep the bullish case intact, with $4,300 seen as the next area of interest.

Bitcoin Stuck in Range

Bitcoin is currently pressing against resistance at $119,000, recovering strongly from last week’s dip below $113,000. The broader trading range between $116,000 and $123,000 remains intact, but multiple failed attempts to push through the top end of the band hint at persistent supply from sellers. Traders caution that CPI could provide the catalyst for a decisive breakout—or confirm that BTC remains locked in sideways trade.

Market Implications

Beyond crypto, a hot inflation reading could strengthen the case for tighter Federal Reserve policy, boosting the dollar and pressuring risk-sensitive assets. On the other hand, any downside surprise in CPI may renew appetite for growth trades, potentially propelling both BTC and ETH to fresh cycle highs.

With volatility likely to surge around Wednesday’s release, traders are bracing for a pivotal moment that could determine whether digital assets extend their 2025 uptrend or enter a period of deeper consolidation.