Ether (ETH) has demonstrated significant strength, mounting a powerful rally toward the psychological $3,000 resistance level, fueled by a potent combination of positive macroeconomic news and robust on-chain fundamentals. The asset, which had been consolidating around $2,770 for most of Tuesday, June 11, began its ascent following reports of a potential breakthrough in U.S.–China trade relations. The momentum accelerated dramatically on Wednesday after a softer-than-expected U.S. inflation report bolstered investor confidence and risk appetite across global markets. While the rally experienced a slight pullback during the U.S. afternoon session, underlying market metrics reveal a growing conviction among bulls, suggesting that any dips are being viewed as accumulation opportunities.

Macro Catalysts Ignite Ether's Breakout

The initial spark for Ether's upward move occurred around 8 p.m. ET on Tuesday, when news emerged that negotiators had drafted a U.S.–China trade framework. This development was amplified when former U.S. President Donald Trump posted on social media at 8:04 a.m. ET Wednesday, stating the deal was effectively done pending formal approval. This hint of a thaw in the long-standing trade dispute provided an initial risk-on bid, pushing ETH toward the $2,780 mark. The primary catalyst, however, arrived at 8:30 a.m. ET on Wednesday. The U.S. Labor Department reported that both headline and core Consumer Price Index (CPI) for May rose just 0.1% month-on-month, below forecasts. This cooler inflation data immediately fueled speculation of potential Federal Reserve rate cuts later this year, sending the dollar and Treasury yields lower. In response, Ether vaulted from the upper-$2,780s to an intraday high of $2,873.46, with spot volume surging to approximately 527,000 ETH, valued at around $1.47 billion, according to market analysis models.

On-Chain Strength and Institutional Inflows Underpin Rally

Beyond the favorable macro backdrop, structural tailwinds continue to reinforce the bullish thesis for Ether. On-chain data shows a massive withdrawal of capital from centralized exchanges, indicating a shift toward long-term holding. Analytics firm Sentora reported that over 140,000 ETH, worth roughly $393 million, was moved off exchanges on June 11 alone—the largest single-day outflow in over a month. This trend is complemented by relentless institutional demand. ETH-based exchange-traded funds (ETFs) extended their inflow streak, adding another $240.3 million on Wednesday and outpacing Bitcoin ETF inflows for the day. Analyst Anthony Sassano highlighted this accelerating trend, noting that Ethereum ETFs have not seen a single net outflow day since mid-May. Further evidence of institutional conviction includes futures open interest reaching a new high above $21.7 billion and the total amount of staked ETH climbing to a record 34.65 million tokens, representing nearly 29% of the total supply.

Technical Outlook: Navigating Key Price Levels

From a technical standpoint, Ether's price action confirms an accelerating uptrend. The series of higher lows established since June 9, culminating in the new higher high at $2,873, defines a clear upward channel. The significant volume spike during the CPI-driven rally validates the breakout above the $2,800 level. Despite a late-session sell-off on June 11 that saw prices dip from $2,772 to $2,736 in early Asian hours on June 12, the market showed resilience. The options market, as reported by Glassnode, reflects this optimism, with the one-week skew dropping sharply to –7.0%, signaling strong demand for upside call options. Immediate support has formed in the $2,735–$2,760 band. For the rally to continue, traders are watching for a decisive close above the $2,900 resistance. A successful breach would open the door for a test of the critical $3,000 psychological zone, with the next significant resistance located near $3,120.