Crypto Today: Bitcoin, Ethereum, XRP trade broadly steady ahead of US CPI data

• Bitcoin consolidates above range support as investors shift their focus to the release of US inflation data.
• Ethereum shows strength as spot ETF inflows exceed $1 billion, the highest level on record.
• XRP remains above support at $3.00 as steady funding rates signal stability ahead of a potential breakout.

The cryptocurrency market is widely consolidating on Tuesday ahead of the release of the United States (US) Consumer Price Index (CPI) data. Bitcoin (BTC) holds above a key range support of $117,000 and $118,000 following the breakout to $122,335 on Monday. 

Meanwhile, Ethereum (ETH) showcases a bullish outlook, trading slightly below $4,300 as bulls target a breakout to its record high of $4,878 reached in November 2021. Ripple (XRP), on the other hand, hovers at around $3.11 with support at $3.00 holding steady.

Market overview: What to expect from US inflation data

The Bureau of Labor Statistics (BLS) is set to release the US CPI data on Tuesday, following the implementation of President Donald Trump’s higher tariffs earlier this month. 

Markets anticipate a 0.2% monthly increase in July inflation and a 2.8% annual rise. The core CPI, which excludes the volatile prices of food and energy, is expected to rise by 0.3% on a monthly basis and 3% annually.

US inflation showed a rising trend in June, with the CPI rising 2.7% annually after increasing 2.4% in May. The core inflation, less the cost of food and energy, rose 2.9% over 12 months in June.

Inflation data could reassess the market's interest-rate cut bets for September's Federal Reserve (Fed) decision. Investors expect the US central bank to slash rates next month, but increasing signs that tariffs are feeding through to prices could trim these expectations. The Fed has delayed interest rate cuts this year, citing the impact of higher tariffs on inflation.

As for the cryptocurrency market, investors will likely tread with caution amid the possibility of a surge in volatility. Since Bitcoin has reversed from its weekly top of $122,335, investors could be eyeing a rebound above $120,000 and toward the record high of $123,218 reached on July 14 if inflation data comes out favourably.

Data spotlight: Ethereum ETFs inflows hit $1 billion 

Ethereum spot Exchange Traded Funds (ETFs) extended their bullish streak on Monday with inflows averaging $1.02 billion, the highest level on record. SoSoValue data shows that BlackRock’s ETHA led other spot ETFs in the US, recording $640 million in inflows, followed by Fidelity’s FETH with $277 million.

Ethereum spot ETF data | Source: SoSoValue 

Inflows in Bitcoin spot ETF operating in the US inched higher on Monday with $404 million, bringing the cumulative total net inflow to $54.4 billion. The total net assets average $151 billion at the time of writing.

Bitcoin spot ETF data | Source: SoSoValue

As for XRP, interest in the token appears steady based on the futures weighted funding rate, which averages at 0.0086%. This is a healthy level , as readings above 0.05% often signal a potential correction. Steady funding rates indicate more traders are leveraging long positions, anticipating the price to sustain the uptrend.

XRP Futures Weighted Funding Rate | Source: CoinGlass

Chart of the day: Bitcoin retests critical support 

Bitcoin price shows weakness in shorter time frames, edging lower to test the support range of $117,000 to $118,000. The Relative Strength Index (RSI), which is declining toward the midline on the 8-hour chart after peaking at around 72 in overbought territory on Monday, indicates a reduction in buying pressure. 

Traders may continue de-risking or shorting Bitcoin if the RSI extends the decline below the midline.

BTC/USDT 8-hour chart

Still, Bitcoin holds above the uptrending moving averages, including the 50-period Exponential Moving Average (EMA) at $116,872, the 100-period EMA at $115,666 and the 200-period EMA at $112,352. In the event of a reversal, these levels would serve as tentative support to prevent the decline from extending toward the $110,000 round-figure support.

Altcoins update: Ethereum upholds uptrend, as XRP consolidates

Ethereum price is holding below the critical $4,300 level as bulls aim for the next breakout toward the record high of $4,878. The RSI holds in overbought territory but shows signs of extending the uptrend, reflecting the steady demand.

Key areas of interest to traders in upcoming sessions are the immediate resistance at $4,300 and the all-time high of $4,878, which, if broken, could see the price of ETH close the gap to $5,000 for the first time.

On the other hand, the range support at $4,000 is in line to absorb the potential selling pressure due to profit-taking and keep the uptrend intact.

ETH/USDT daily chart

As for XRP, the price is consolidating above support at $3.00. However, the RSI’s decline near the midline indicates that overhead pressure could overwhelm demand, and keep the path of least resistance downward in the short term.

XRP/USDT daily chart

If traders buy the dip between the current price of $3.13 and the support at $3.00, the tailwind on XRP could fuel a rebound. 

The seller congestion at $3.40 remains crucial in the recovery toward the record high of $3.66 reached on July 18. If XRP is rejected at this level, the $3.00 support would remain insight with further decline to the 50-day EMA at $2.89 staying within reach.