Ether (ETH) surged above $2,000 after the US CPI came in lower than expected. Speculation for a rally toward $2,500 is fueled by ETH/USD’s first bullish weekly candle close since January. Ether futures’ open interest dropped by 80 million ETH in 30 days, with funding rates at three-year lows.

Major exchanges saw a decline of over 80 million ETH in open interest in the past month. Binance recorded the largest drop of about 40 million ETH. This suggests leverage traders are reducing exposure, not opening new positions. Ether futures funding rates on Binance hit -0.006, signaling extreme bearish sentiment.

Ether’s network activity surge and rising institutional investor inflows are driving short-term price gains. The ETH/USD pair broke out of a falling wedge on the four-hour chart, aiming for $2,150 and potentially $2,500. Key support is at $2,000, with a significant support area established between $1,880 and $1,900.

As ETH dropped below $2,000, accumulation addresses saw a surge in daily inflows, signaling strong investor confidence. This news article contains no investment advice. Readers should conduct their own research. Cointelegraph does not guarantee the accuracy of the information provided.

Read more at Cointelegraph: Is A Short Squeeze Next?