Ethereum climbed more than 6.5% in less than an hour on Friday, reaching $2,663 after new U.S. Consumer Price Index data matched economists’ forecasts and triggered a broader cryptocurrency market rally.
Ether (ETH) crossed $2,600 for the first time since early February, briefly reaching a multi-month high and reviving hopes that the number two cryptocurrency could end 2026 in positive territory.
Data from Bitstamp showed ETH reaching its session high at 10 a.m. EST. It later gave up some of those gains, but found support above $2,500. Before the CPI-driven move, it had been trading around $2,450 and appeared to be weakening shortly before the sudden rise.
The rally came in two stages. ETH initially moved through $2,500 before slowing at $2,510. A second surge then lifted the cryptocurrency by more than $150, or 6.5%, in less than an hour, taking it to $2,663.
A wider market decline later reduced its price to $2,533 by 3 p.m. Despite that retreat, ETH was still almost 3% higher over 24 hours. Its market capitalisation remained just below $310 billion, while its year-to-date decline narrowed to 15%.
Short sellers hit by sharp move
The rapid advance led to $215 million in liquidations of short positions, compared with $91 million in liquidated long positions. Over the same period, liquidations involving bitcoin longs and shorts combined exceeded $211 million.
Ethereum accounted for approximately 40% of the $758 million in cryptocurrency positions liquidated over 24 hours, highlighting the scale of the squeeze on traders betting against it.
The move has also renewed interest in ETH after a prolonged period in which other altcoins, including HYPE and ZEC, attracted greater attention. Analysts on the social media platform X pointed out that ETH had outperformed bitcoin and several other high-cap altcoins.
Some traders said that relative strength could indicate the beginning of an “ETH season”, or a rotation into altcoins.
Technical traders, however, warned that the strength of the initial move was followed by a quick retracement towards the $2,500-$2,530 range. That pullback suggested resistance close to $2,650, while $2,500 was identified as the key support level ETH must hold if its upward momentum is to continue.
The mood on X remained positive but cautious. Traders viewed the move above $2,600 as evidence that a consolidation phase lasting several months could be coming to an end.
If Ethereum can remain above $2,500, some market participants have set September targets between $2,800 and $2,950.
