ETH Wins Today's Risk-On Bounce Among Crypto Majors

ETH is enjoying another stretch of relative strength, trading up as much as 7% this morning above $2,600, and still running around +4% on the day at the time of writing.

In this span, ETH outperformed a flat BTC (+0.33%) and warmer majors like SOL, HYPE, and ZEC (which are all roughly +2% over the past 24 hours).

What's the Scoop?

• The backdrop: Friday's CPI landed mixed, i.e. a hotter headline number softened by a cooler core reading. Markets seem to have shrugged this result off as already priced in, flipping the mood from Thursday's PPI-driven jitters back toward risk-on.
• Secondary driver: This vibe shift led to buy pressure, the buy pressure led to a bounce, and the bounce led to a squeeze. As ETH shorts had become a crowded trade once more, that bounce forced hundreds of millions in liquidations, with one outsized position wipeout on Hyperliquid doing a lot of that damage alone.
• What to watch: Traders are now betting the Fed will raise rates at next week's FOMC meeting. Odds jumped to the mid-to-high 80% range after Friday's data, up from around 70% the day before. If that rate hike happens and the Fed signals more are coming, ETH's rallying could stall. Yet if Fed Chair Warsh sounds less aggressive when he speaks afterward, ETH's strength could just as easily keep going.