Bitcoin (BTC) and Ethereum (ETH) prices are in focus following the release of the first US CPI data since the US-Iran war began. US inflation in March rose to 3.3% in line with expectations, reflecting an increase in the cost of living because of the Middle East war. Amid the hot inflation reading, the forecast on Bitcoin and Ethereum price movement signals a potential spike in volatility.
US Releases First CPI Data Since US-Iran War Began
The US-Iran war began on February 28, meaning that the March 2026 CPI is the first inflation report that reflects the extent to which the US economy has been affected by the war. While inflation rose to the highest level in nearly two years, the market had already anticipated a hot print as the price of Bitcoin and Ethereum remained steady at press time. BTC traded at $72,233 with a 1.24% intraday gain, while ETH was up 1.8% to trade at $2,220.
However, the US economy is not the only one grappling with surging inflation because of the Iran war. Japan’s PPI rate hit a four-month high following the Strait of Hormuz closure and surging crude oil prices. According to analysts, despite the rising inflation, Japan may not hike interest rates, as that could add more strain to an economy that is already affected by war.
In the US, investors have already priced in zero rate cuts, with data from the CME FedWatch Tool showing 98% odds that the Federal Reserve will retain interest rates between 3.50% and 3.75%.
With US inflation at multi-month highs, and above the Fed target of 2%, Bitcoin could record a surge in demand as markets turn to BTC as an inflation hedge. As a result, Ethereum could also move higher.
Bitcoin Price Forecast as Bull Flag Signals $77K Breakout
Bitcoin price has created a bull flag on the four-hour chart, supporting a bullish forecast. The pattern’s flag pole emerged earlier this week as the price rose from around $68K to $72K. After this rally, BTC consolidated and could be readying for the next leg up.
If the price breaks out of the parallel channel and retests the upper boundary as support, a 6.8% rally could ensue. This could drive Bitcoin towards $77,564, its highest level since early February.
Technical indicators support this bullish long-term Bitcoin price prediction. The rising ADX line indicates that the uptrend in Bitcoin price is strong. Similarly, the RSI at 67 indicates that a bullish momentum is in play.
Ethereum Price Forecast Amid Bullish Breakout
Ethereum’s four-hour chart also shows a similar bull flag, but in the case of ETH, a breakout has been confirmed. ETH broke out of this pattern on April 10, following a 1.95% intraday gain. However, it will confirm an upward reversal if the resistance level holds as support.
Following this breakout, a 9.46% rally is looming for Ethereum, which may push the price above $2,400. This Ethereum price forecast is further supported by the bullish RSI crossover after the RSI line crossed the signal line. This indicates that the bullish momentum is strengthening.
The 50-day and the 150-day SMAs have also made a bullish crossover, another sign that ETH price might continue with the sustained recovery.