Ethereum Price Dips Below $4,600 After Hot PPI, But Traders Still Bet on $5K by 2025

Ethereum price has dipped 2.37% in the last 24 hours, to trade at $4,650.95, on a 21.8% increase in the daily trading volume, to $76.4 billion.

Ethereum Dips Below $4,600 After Hot PPI Data Shakes Markets

Ether dropped below $4,600 on Thursday after the U.S. Producer Price Index (PPI) came in hotter than expected at 3.3%. This signaled persistent inflation in the economy, adding to market concerns about interest rates staying higher for longer. 

This higher inflation reading worried investors about interest rates staying high, causing crypto prices, including Bitcoin and Ether, to fall. Despite this dip, Ethereum remains a top focus on Wall Street. Investors and analysts remain optimistic and expect Ether’s price to hit the $5,000 mark by late 2025, or even sooner. 

Many believe the cryptocurrency ecosystem, including DeFi, NFT platforms, and Layer-2 scaling solutions, will benefit as traditional finance companies increasingly adopt blockchain technology. At the same time, ongoing interest in potential Ethereum exchange-traded funds (ETFs) and continued staking by large holders help support ETH prices even during market pullbacks.

Looking at Ether’s recent price action, ETH started Thursday above $4,700 but quickly dipped to $4,565 after the hot PPI report. Trading volume spiked as more sellers rushed in. However, strong buying support kept Ether from falling much further. 

Ethereum’s Long-Term Uptrend Intact Despite Overbought Signals

Technically, Ether is still in an uptrend, currently trading around $4,644. ETH has been moving steadily higher within a rising channel for several months. This keeps the general trend bullish, even though Ether corrected recently after hitting strong resistance just below $4,800.

The price is still sitting far above both the 50-day (near $2,600) and 200-day (near $2,900) simple moving averages. This supports that  Ethereum’s long-term uptrend is very much intact, and the market remains strong above these levels.

The Relative Strength Index (RSI) is at 77, which is firmly in the “overbought” zone. This reading shows that buying was very strong, but now Ether may need to cool off and take a break before trying to move higher. A drop in RSI from these extreme levels usually signals a short-term correction or sideways movement before the next big move.

ETHUSD Analysis Source: Tradingview

Looking at the MACD (Moving Average Convergence Divergence) indicator, we see the MACD line above the signal line and both above zero. This is a classic bullish signal. The histogram remains in positive territory, strengthening that the overall trend is still upwards.

Ethereum Holds Bullish Outlook Despite Pullback

The ADX at 41.98 suggests that the current trend is strong and not showing signs of reversal yet, supporting the view that Ether could stay bullish after any pullback.

Chart analysis shows Ether moving inside a red “ascending channel.” The upper edge of this channel, near $4,800, acts as a ceiling (resistance), while the lower part of the channel marks support near $4,200–$4,400. The price has just tested the top of the channel and pulled back, so a retest of mid-channel or previous support, in the $4,400–$4,500 area, could bring in more buyers.

If Ether breaks above $4,800 (the top of the channel), it could quickly move up toward the next psychological target at $5,000. If ETH loses support and drops below $4,400, a bigger correction could follow. Though the overall long-term trend still looks positive.