Ethereum Price Analysis and Market Outlook
On December 18, 2025, Ethereum (ETH) is making a strong push to reclaim the $3,000 mark following a positive inflation report. The Consumer Price Index (CPI) data revealed an annual increase of 2.7%, which was below analysts' expectations of 3.1%. This unexpected dip in inflation could influence the Federal Reserve's monetary policy, potentially leading to an earlier interest rate cut.
Market Reactions and Trading Volumes
The lower-than-expected inflation figures have sparked a rally in the cryptocurrency market, with ETH trading volumes surging by 65% in the last 24 hours. This increase in trading activity indicates a growing buying pressure, as ETH currently represents 8% of its circulating market cap. However, the market remains volatile, with significant liquidations occurring on both long and short positions, totaling over $600 million.
Technical Analysis and Price Predictions
Despite the recent rally, ETH has faced challenges in breaking above the critical resistance level of $3,300. A rejection at this level has confirmed a bearish market sentiment, with ETH experiencing a 6% decline over the past week. Analysts are closely monitoring the $2,700 support level; a drop below this could lead to further declines, potentially reaching $2,100, representing a downside risk of 22%.
Future Outlook
For ETH to reverse its current downtrend, it must successfully break above the $3,300 resistance. A bullish breakout at this level could signal a significant trend reversal, positively impacting ETH's long-term price trajectory. However, the Relative Strength Index (RSI) indicates prevailing negative momentum, as it has recently dropped below the 14-day moving average.
Conclusion
In summary, while the recent CPI data has provided a temporary boost to ETH, the cryptocurrency market remains uncertain. Traders should remain vigilant, particularly regarding key support and resistance levels, as well as the potential implications of future Federal Reserve decisions on interest rates.