Ethereum’s Wild Ride: Will It Hit $1,866 or Just Keep Playing Hard to Get?

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  • US January CPI slowed to 2.4% YoY, beating 2.5% forecast as energy prices fell 1.5% month over month.
  • Core CPI rose 0.3% MoM and held at 2.5% YoY, matching estimates amid easing car and food prices. Who knew food and cars could cooperate?
  • Ethereum trades near $1,896, below $2,001 resistance, with $1,866 eyed as a key downside target. It’s like waiting for your crush to text you back-just a little nerve-wracking!

So, Ethereum is hanging out around $1,896 after a recent dip and what can only be described as a ‘meh’ rebound. Meanwhile, the new U.S. inflation data reveals that things are cooling down like a hot coffee left on the counter too long. The softer Consumer Price Index reading gave risk assets a little pep in their step, and Bitcoin briefly flirted with $69,000. Talk about a wild night!

But hold onto your hats, folks! Ethereum is still below that oh-so-important resistance level, and traders are wondering if the bearish trend is still in charge, despite all the ‘better’ news. Someone get these traders a crystal ball!

Ethereum Price Structure Keeps Bears Focused on $1,866

Ethereum bounces off the $1,896 area like a rubber ball, yet the price action continues to follow a descending structure on higher timeframes. The $2,001 H1 swing high is being watched like a hawk, because heaven forbid it invalidates the whole plan. If it breaks through, expect some serious short covering and possibly a re-shuffle of short-term positions-kind of like moving your furniture around when you have guests coming over.

dropped to ~$1,896 and bounced. My plan is still the same as it was since Monday: trading the bearish trend until it’s invalidated-like sticking to a diet until dessert shows up.

Ethereum is respecting the trend nicely; shorts are still running but not too eager to add because of CPI. Potential trades today…

– Lennaert Snyder (@LennaertSnyder)

On the downside, keep an eye on the $1,924 level as near-term support. If we see a confirmed hourly break below that low, it might signal a move toward deeper liquidity levels. Some traders are even peeking at lower timeframes for a market structure break after any short-term rally-because who doesn’t love a good plot twist?

The $1,866 level remains a key downside target in current setups. It’s like the Holy Grail for price behavior right now. While inflation data supported broader markets, Ethereum seems to be playing hard to get with those resistance levels. Sigh.

January CPI Cools to 2.4% as Energy Prices Fall

The January 2026 CPI report showed headline inflation rose 0.2% month over month, which is just below the 0.3% consensus forecast. On an annual basis, headline inflation cooled to 2.4%, down from 2.7%. This moderation was partially thanks to a 1.5% decline in energy prices-because we all know that lower energy costs are like finding a $20 bill in your winter coat.

🚨 January 2026 CPI just dropped – green light for crypto, but let’s not get too hyped yet! Headline inflation cooled to 2.4% YoY (beat 2.5% forecast, down from 2.7%). MoM: just +0.2% (vs 0.3% expected). Core steady at 2.5% YoY-sticky, but not panic mode. Crypto pumped nicely…

– Carnage (@carnage_trade)

Core CPI, which excludes food and energy, increased 0.3% on the month and stood at 2.5% year over year. Shelter costs rose 0.2%, which is like saying your rent only went up a little, so let’s celebrate. Used vehicle prices fell 1.8%, while new vehicle prices edged up 0.1%. Because nothing says “I love my budget” like a used car sale.

Food categories also showed easing pressures. Egg prices dropped 7% during the month-good news for your breakfast burrito budget-while beef and veal prices declined 0.4%. Treasury yields moved lower after the release, with two-year yields falling several basis points, while stock futures remained relatively steady in early trading. It’s almost like the market has figured out how to chill.

Market Reaction and Fed Policy Expectations

Crypto markets reacted positively following the CPI release, with Bitcoin approaching $69,000 and Ethereum getting its act together after earlier declines. But let’s not forget this data was released right before the weekend, so everyone is now nervously looking ahead to how markets will close and prepare for the next chapter of this rollercoaster ride.

Rate cut expectations for the Federal Reserve remain limited for March-like hoping for brunch but ending up with cereal instead. Market pricing indicates roughly a 7% to 8% probability of a rate reduction at the March 18 meeting. Odds for a June cut increased modestly after the softer inflation reading, so there’s that glimmer of hope.

Bloomberg Economics analysts Anna Wong and Troy Durie wrote, “Core CPI was substantially cooler than in past years.” They added that disinflationary forces in cars, food, and energy may dominate in the coming months. Meanwhile, other areas such as recreational goods and services are still holding strong, leaving markets perched on the edge of their seats for future data and policy signals. Buckle up, folks; it’s going to be a bumpy ride!

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2026-02-14 07:06