Ethereum Slides as Risk Appetite Weakens Ahead of U.S. Inflation Data
ForeX News Today
Published: December 17, 2025 – 21:31 UTC
Ethereum (ETH) extended its losses during Wednesday’s trading session, as most major cryptocurrencies came under pressure amid a broad shift toward safe-haven assets and reduced appetite for high-risk investments. The pullback comes against the backdrop of escalating geopolitical tensions and growing caution ahead of key U.S. inflation data.
The digital asset market mirrored weakness across global risk assets, with investors reassessing exposure to cryptocurrencies as macroeconomic and geopolitical uncertainties intensified.
Geopolitical Tensions Weigh on Market Sentiment
Market sentiment deteriorated further after the United States imposed a comprehensive blockade on all sanctioned oil tankers entering and leaving Venezuela. The move heightened geopolitical risks and fueled concerns over global energy markets, prompting investors to seek safety in traditional defensive assets.
Such developments tend to weigh heavily on cryptocurrencies, which are often treated as high-risk assets during periods of elevated uncertainty and volatility.
Federal Reserve Signals Remain in Focus
Investors are also closely evaluating recent comments from Federal Reserve officials. On Wednesday, Fed Governor Christopher Waller stated that the U.S. central bank still has room to cut interest rates, citing increasing concerns over a potential slowdown in the labor market.
While rate cuts are generally viewed as supportive for risk assets in the long term, near-term uncertainty surrounding the timing and pace of policy easing has kept traders cautious, limiting upside momentum in cryptocurrencies.
Markets Await Key U.S. Inflation Data
Attention is now firmly focused on the upcoming release of the U.S. Consumer Price Index (CPI) for November, scheduled for Thursday. The report is expected to provide clearer insight into inflationary pressures and their potential impact on Federal Reserve policy decisions.
A higher-than-expected inflation reading could reinforce cautious sentiment across risk assets, while a softer print may offer temporary relief for cryptocurrencies, including Ethereum.
Ethereum Price Performance
During Wednesday’s session, Ethereum saw notable selling pressure.
As of 20:30 GMT, Ethereum was trading at $2,819.30 on CoinMarketCap, down approximately 4.4% on the day. The decline reflects broader weakness across the crypto market, as traders trimmed exposure ahead of key macroeconomic catalysts.
🔎 Technical Analysis – Ethereum (ETH/USD)
From a technical perspective, Ethereum remains under short-term bearish pressure after failing to maintain gains above recent resistance levels. The price has broken below key short-term support, signaling weakening bullish momentum.
Momentum indicators suggest continued downside risks in the near term, particularly if selling pressure persists ahead of the U.S. inflation release. However, stabilization above current support levels could allow for a corrective rebound.
Key Technical Levels
- Support: $2,780 – $2,700
- Resistance: $2,900 – $3,000
📊 Expected Trading Range – Short Term
- Ethereum (ETH/USD): $2,700 – $3,000
📌 Market Outlook
Overall market direction for Ethereum remains data-dependent, with U.S. inflation figures likely to act as a key catalyst for near-term price action. Until clearer signals emerge, volatility is expected to remain elevated across the cryptocurrency market.
Traders are likely to remain cautious, favoring short-term strategies while closely monitoring macroeconomic developments and Federal Reserve signals.
⚠️ Disclaimer
This content is provided for informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any financial instruments. Cryptocurrency markets are highly volatile, and readers should conduct their own research or consult a qualified financial advisor before making any investment decisions.