Why Ethereum (ETH) Fell 11.3% This Week

Core Viewpoint - Ethereum experienced an 11.3% decline since last Friday, impacting related assets like the iShares Ethereum Trust ETF and Wrapped Ethereum token [1][10] Price Movement Analysis - The price drop occurred in two phases: initial profit-taking at the end of the previous weekend followed by a disappointing inflation report released on Thursday [2][10] - The iShares Ethereum ETF and Wrapped Ethereum are designed to closely track Ethereum's price, resulting in identical declines for these assets [3][10] Macroeconomic Impact - The inflation report for August indicated higher-than-expected price increases, potentially leading to tighter fiscal policies and affecting interest rate cuts previously signaled by the Federal Reserve [5][6] - High interest rates on new debt typically deter institutional investors from risky investments, which has been a significant factor in Ethereum's growth since the launch of Ether-based ETFs in summer 2024 [6] Long-term Outlook - Despite recent corrections, Ethereum has nearly doubled in value over the past six months and is trading 174% above its 52-week lows from April [8][10] - Early signs of Web3 applications gaining traction could pave the way for broader Ethereum adoption in 2026 and beyond [9][10]