Ethereum (Ether/ETH) is struggling on Wednesday—one day ahead of the ECB central bank meeting and two days before the publication of new US inflation data—to sustainably conquer the 2,500 US dollar mark.. Contrary to the general market trend, the price is thus showing relative strength. The geopolitical and monetary policy uncertainties have evidently not yet fully hit the crypto market. The fact that larger-scale profit-taking continues to be absent speaks for a possible continuation of the recent climb. Overall, the prospect of regulatory tailwinds from Washington is likely to continue to provide a boost.
Ethereum price chart on a monthly basis
US Treasury: Bond purchases in focus again
On Wednesday, the US Treasury Department announced that up to $6 billion in US government bonds with maturities of 10 to 20 years are to be purchased on Thursday as part of its latest buyback operation. This would simultaneously correspond to three times the volume of the previous operation for long-term bonds. In August, the agency had announced its intention to double the volume of its buybacks of long-term securities to at least $4 billion in the coming quarter.
After White House crypto summit – Investors continue to hope for regulatory tailwinds from Washington
On August 19, US President Donald Trump hosted various industry leaders at the White House. Among other things, the so-called „CLARITY Act“ was discussed. Trump himself had pushed for the passage of the bill. If the legislation is finally approved, it could serve as a significant milestone not only for the US sector, but for the entire industry around the globe.
Outlook: ECB meeting on Thursday, US inflation data on Friday
For crypto investors, in addition to the ECB meeting on Thursday, the US inflation data on Friday are likely to be of particular interest.
The ECB plans to announce its key interest rate at 2:15 PM. The interest rate level could potentially be revised upward by another 0.25 percentage points. The so-called deposit facility rate currently stands at 2.25 percent.
However, of even greater importance could be the outcome of the US inflation data (2:30 PM). Should price pressures overall prove to be stronger than expected, this could further fuel interest rate speculations, which would likely come at the expense of non-yielding assets such as Ether.
