The United States releases its Consumer Price Index (CPI) data on August 14th. This key economic indicator can influence global financial markets, including cryptocurrencies. As Ethereum (ETH), the second-largest cryptocurrency, gains traction with traditional finance players, its price becomes more susceptible to macroeconomic data like CPI. Currently, ETH trades at $2,660, but has dipped slightly in the past 24 hours leading up to the CPI announcement.

Looking ahead, Finbold previously reported a mid-term prediction for ETH to reach $6,500-$8,000 by 2025 due to growing institutional interest and ecosystem development. However, for the short-term, AI models ChatGPT-4o, Claude 3.5 Sonnet, and Llama 3.1 were consulted. They considered three scenarios based on last month's CPI data, this month's expectations, and ETH's current price.

If the CPI data meets market expectations, a slight price increase of 1% to 3% is predicted, potentially reaching $2,750. This aligns with last month's CPI figures. A bullish scenario, with a lower-than-expected CPI, could push ETH between $2,700 and $3,000. Conversely, a higher-than-expected CPI could drop the price below $2,500.

The Federal Reserve uses CPI data to set interest rates. Lower inflation could prompt them to cut rates, a move currently anticipated by some crypto traders based on favorable CPI news. With high interest rates raising recession fears and impacting risk assets like ETH, a potential rate cut could be a positive sign for the cryptocurrency's price.