Cryptocurrency markets found a tailwind on August 12, 2026, after U.S. inflation data cooled more than expected. The Bureau of Labor Statistics reported that the Consumer Price Index rose just 0.1% in July, bringing the annual rate down to 3.4% from June's 3.5%. Core inflation, excluding food and energy, increased 0.2% month-over-month and 2.5% year-over-year. The softer readings reduced pressure on the Federal Reserve to raise interest rates further, lifting risk assets including Pi Network (PI) and Ethereum (ETH).
PI surged over 5% to trade near $0.0883, buoyed by both the macro tailwind and the successful passage of the Protocol 26 upgrade. The upgrade deadline for Mainnet node operators was August 11; nodes that did not update risked losing connectivity. No widespread disruptions were reported, though the Pi Core Team has not yet disclosed the participation rate. Protocol 26 enhances smart contract safety, state management, interoperability, and cryptographic functions, setting the stage for the final Protocol 27. Technically, PI held above its 20-day simple moving average at $0.0853 but faces resistance at the 50-day moving average ($0.096). Crypto analyst Gopal noted a large triangle pattern, suggesting a breakout above $0.10 could trigger a move toward $0.15. However, caution remains: an estimated 775.8 million PI tokens could unlock by year‑end, potentially adding supply pressure.
Ethereum rebounded from $1,850 to trade above $1,900, gaining roughly 3%. The CPI report reinforced the bullish case, and spot buying intensified—data showed 30,000 ETH withdrawn from centralized exchanges, reducing immediate supply. Trading volume increased 35% above the 20-day average. ETH now holds above its 20-day and 100-day moving averages near $1,890, but must clear the $1,925‑$1,950 resistance zone (where a large liquidation cluster sits) to extend toward $2,000. The 200‑day moving average at $2,035 remains a formidable barrier. Analysts Ted Pillows and Michaël van de Poppe see a path to $2,000 and possibly $2,300 if the current support holds, with $1,850 as the key short‑term invalidation level.
