Ethereum is clearing a key area on the charts as it tops $4,000 and hits a multi-year high. The Daily Breakdown digs into the move.
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What’s Happening?
The Nasdaq 100 briefly hit a record high on Monday, but retreated and closed lower alongside the other major US stock indices ahead of today’s key CPI inflation report. Investors also saw Bitcoin and other key cryptocurrencies retreat from yesterday’s highs too, after it looked like BTC may make a run at its all-time highs.
Recall that last month’s CPI print showed an uptick in inflation, as did the PCE report a few weeks ago. Another hot report today could make investors worried that inflation is making a comeback — something that could impact expectations for lower interest rates.
For now, the market is pricing in a rate cut at the Fed’s next meeting in September. We’ll see if today’s news influences those odds in the coming days.
On the earnings front, Sea Ltd and On Holding (maker of On Cloud shoes) are making some noise this morning, while CoreWeave, Cava, and Rigetti Computing report tonight.
On the crypto front, Tezos, Balancer, and Bitcoin Cash are pushing higher.
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The Setup — Ethereum
On Monday, Ethereum hit a multi-year high as it briefly topped $4,300. Notably, that also sent it over a key resistance area, as the $3,900 to $4,000 zone has stifled the rallies since 2024. Now above this area, bulls are hoping that this prior area of resistance turns into current support moving forward. Remember, the all-time high is up near $4,867.
Chart as of 8:00 a.m. ET on 8/12/2025. Source: eToro ProCharts, courtesy of TradingView.
For investors who can’t trade or aren’t comfortable trading cryptocurrencies outright, they can consider ETFs for BTC and ETH. On the ETH front, ETHA remains the largest ETF by assets, while also supporting options trading.
Bulls can utilize calls or call spreads to speculate on upside, while bears can use puts or puts spread to speculate on downside. In either case, investors may consider using adequate time until expiration.
For those looking to learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
CRCL
Shares of Circle are trading higher this morning, up almost 10% in pre-market trading after the firm reported its quarter results. Revenue jumped more than 50% year over year as strong stablecoin growth in the quarter helped propel sales. While well off the post-IPO highs, Circle is still up more than 400% from its IPO price. Top analysts have a consensus price target of roughly $200 a share for CRCL.
NVDA
Nvidia and Advanced Micro Devices failed to close higher yesterday despite reports suggesting that they’ll be able to resume chip sales to China — after agreeing to give 15% of the revenue from those chip sales to the US government. Check out the chart for NVDA.
SPX500
The tariff drama is seeing more can-kicking down the road, this time with negotiations between the US and China receiving a 90-day delay. While it’s a good thing for markets, it’s another example of why investors have stopped taking the tariffs threats as seriously as they were in March and April. The FXI ETF is one way to gain exposure to Chinese equities.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.
