Ethereum Slides Below $1,900 as CPI Momentum Fades

The U.S. Bureau of Labor Statistics confirmed July inflation figures matched market forecasts, with headline rates at 3.4% annually. While the data cleared the risk of a surprise, it failed to provide the catalyst needed to push Ethereum through the stubborn $1,920–$1,950 supply zone. Sellers have repeatedly defended this area since late July, and the lack of positive momentum prompted a quick retreat from intraday highs of $1,918.

Structural headwinds also persist. The rise of Layer 2 networks has significantly lowered transaction costs, effectively reducing the base fee burn rate that previously bolstered Ethereum’s supply narrative. With mainnet fees dropping sharply, the network’s ability to curb circulating supply during periods of low demand has weakened.

Technical signals currently favor a cautious outlook. The 4-hour Relative Strength Index sits at 45.15, indicating bearish momentum, while the asset trades below its Bollinger Band midpoint at $1,888. Should Ethereum fail to hold the $1,875 support level, liquidity data suggests a potential slide toward $1,850 or even $1,835. Conversely, traders are watching the ETH/BTC pair; analyst Daan Crypto Trades noted that a breakout above 0.03 BTC remains essential for any sustained recovery against the broader market.