Ethereum Remains Volatile Ahead of US Inflation Report as ETH ETFs Shed Assets

Core Insights - Ethereum's price increased by 0.5% in the past day, currently trading at $3,973, but is down 9.5% from a month ago and up 2.3% from last week [1] - Ethereum ETFs experienced significant outflows, shedding $145 million on Monday and $311 million the previous week, indicating investor nervousness amid macroeconomic uncertainties [2] - Bitcoin funds have shown a quicker recovery compared to Ethereum, with Bitcoin experiencing a loss of $40.4 million yesterday after a total outflow of $1.2 billion last week [2] Market Sentiment - Persistent redemptions suggest active passive institutional selling, with near-term market fragility heightened by the delayed U.S. CPI release, now set for October 24 [3] - A majority of users on the Myriad prediction market believe the U.S. government shutdown could become the longest in history, impacting market sentiment [3][4] - Institutions appear to favor Bitcoin over Ethereum, with Bitcoin's dominance close to 60%, leading to more significant struggles for Ethereum ETFs [4] Economic Indicators - Investors are closely monitoring the upcoming Bureau of Labor Statistics September Consumer Price Index report, which could influence market dynamics [4] - A stronger-than-expected CPI could pressure risk assets, potentially pushing Ethereum's price toward the $3,700 zone, while a softer reading could lead to a rapid rebound [5]