Ethereum Rallies After US Inflation Meets Expectations

The price of Ether jumped 7.46% to 2619 dollars following the release of data on US inflation. Tom Lee mentions the probable start of a “brutal rally”, however his projection more broadly concerns risky assets and does not set any specific target for ETH.

The price of ether climbs after US inflation

During the session on September 11, Ether ended the day up 7.46%. Indeed, its price hovered around 2619 dollars, bringing its weekly gain to 6.62%. Such a rebound came after many sessions marked by investor caution.

The market therefore reacted to the release of data on the US consumer price index. Thus, inflation reached 3.4% over one year in August, in line with expectations. However, prices rose 0.4% over one month, while core inflation moved by 0.3%.

Main statistics put Ether’s rebound in context :

• ETH reached 2619 dollars after a daily increase of 7.46% ;
• Its seven-day gain stood at 6.62% ;
• US inflation reached 3.4% year-over-year in August ;
• The core index rose 0.3% over one month.

Investors had adopted a defensive posture before this release. Indeed, the absence of a bad surprise then favored a return to cryptos. Short sellers also may have bought back their positions to limit losses, which accelerated the rise.

Such a mechanism is equivalent to what traders call a “face-ripper rally”. It constitutes a rapid increase that catches sellers off guard and forces them to buy, fueling the move.

Tom Lee’s forecast is not only about Ethereum

Tom Lee, co-founder of Fundstrat and chairman of BitMine, believes that the market’s excessive caution creates the conditions for a marked rebound. Before the release of inflation statistics, Fundstrat wrote “that a less bad outcome can trigger a significant rise”, in a note dedicated to investor positioning.

Such a statement does not represent a projection solely dedicated to Ethereum. Fundstrat’s analysis more broadly concerns stocks and cryptos. It is related to Ether because of the crypto’s rise and Tom Lee’s direct relations with BitMine.

The analyst did not release any price target for ETH nor any technical level that could confirm a sustained recovery. This observed move may therefore correspond to a relief rally without necessarily marking the start of a new bullish cycle.

The persistence of inflation also constitutes a risk. Higher prices would encourage the Federal Reserve to maintain a restrictive monetary policy or raise its rates. Such a scenario could weigh on non-fixed income assets, including cryptos.

BitMine now holds 4.9% of the ETH supply

Tom Lee’s position deserves special attention. He chairs BitMine, the largest corporate treasury in Ether. The company held 5.93 million ETH as of September 7, or 4.9% of the supply used as reference in its filing with the SEC.

BitMine had staked 5.07 million ETH, nearly 85% of its reserves. The company estimated its annualized revenues from this operation at 330 million dollars, based on a yield of 2.61%. This amount remains a forecast sensitive to the crypto price and the network’s yield progression.

Tom Lee states: “BitMine has been buying ETH every week since launching its treasury strategy on June 30, 2025”. The company purchased 28086 ETH during the week preceding its statement.

These acquisitions reduce the amount of Ethers automatically available on the market, especially if the tokens are staked. However, they do not guarantee a price increase. Investor demand, Fed policy and overall market evolution will remain decisive.

A rebound of Ethereum to 2619 dollars thus supports in the short term the scenario of a relief rally. However, a sustained evolution will require new spot purchases, such as those of BitMine, and a less unfavorable monetary environment.