Ethereum is regaining momentum as traders position ahead of key U.S. economic data that could shape the next move across crypto markets. Summary Ethereum price rose nearly 2% to around $3,870 as investors await the upcoming U.S. inflation report. A modest uptrend in the broader market is adding to the price boost. Stronger on-chain activity and DeFi growth are reinforcing market confidence as ETH tests resistance near $3,890, eyeing a potential breakout toward $4,090. Ethereum is trading around $3,870, up nearly 2% over the past 24 hours, as the market turns its attention to the upcoming U.S. inflation report. The token’s price recovery comes after steep losses earlier in October, and while ETH remains down for the month, optimism is building across technical and fundamental signals. Ethereum price chart | Source: crypto.news Behind this latest rally are multiple drivers ranging from macroeconomic optimism to renewed institutional activity. As anticipation over the U.S. CPI data builds, Ethereum’s fate this week may hinge on the inflation print and its impact on central bank policy. Here are three key factors driving the recent surge in ETH (ETH) ahead of the report. Macro optimism and inflation expectations Growing optimism around upcoming U.S. inflation data is giving ETH a boost. Investors are betting that price growth will remain stable or cool, easing fears of more interest rate increases. If the Consumer Price Index (CPI) report meets or falls below forecasts, it could reinforce confidence in a more “dovish” Federal Reserve. You might also like: XRP price consolidates at $2.40: Is a major breakout ahead? Markets are already reacting to this shift in sentiment. A softer inflation outlook has fueled a move across the markets, lifting assets as traders position for easier monetary conditions and potential rate cuts. Modest market uptick boosts Ethereum price Broader market momentum is also helping lift Ethereum. Total crypto market capitalization rose about 1.6% in the past 24 hours to roughly $3.79 trillion, with more than 80 of the top 100 tokens posting gains, according to data from CoinGecko. The uptick reflects improving risk appetite across digital assets, with traders rotating back into large-cap coins. The synchronized recovery across major assets signals that ETH’s current strength is not isolated but part of a wider market rebound supported by easing macro pressures. On-chain activity and DeFi resurgence On-chain health is providing strong support for Ethereum’s price. Staking participation has been trending higher, while total value locked (TVL) in leading DeFi platforms is up after recent lows, per data from DefiLlama. Platforms like Lido and EigenLayer are driving more users to participate in staking and liquidity provision, with combined inflows of over $400 million in the last 24 hours. ETH’s recent climb has brought its price near a key resistance level around $3,890. A decisive break above this range, supported by strong trading volume, could open the door for a move toward $4,090, the next near-term resistance, and potentially higher targets. You might also like: EU imposes sanctions on Russia-tied A7A5 stablecoin