Key takeaways
- Ethereum dropped below $2,400, losing 5.3% over 24 hours, following a hotter-than-expected US inflation report that shook crypto markets.
- Rising Treasury yields, a strengthening US dollar, and increased expectations for interest rate hikes placed additional downward pressure on ETH.
- Immediate support is found around $2,353–$2,355, whereas overhead resistance at $2,498 and $2,548 may hinder any recovery efforts.
Ethereum retreats as inflation raises rate hike concerns
Ethereum slid beneath the $2,400 mark on Thursday as a stronger-than-forecast US inflation update sparked a new wave of selling across the cryptocurrency sector.
The second-largest digital asset changed hands near $2,370 during the reporting period, registering a roughly 5.3% decline over the trailing 24 hours.
The Consumer Price Index for September climbed 0.6% month-over-month, matching projections but picking up the pace from August’s 0.4% advance. On an annual basis, headline inflation hit 3.7%, coming in above the expected 3.6% and rising from its previous reading of 3.4%.
Core inflation, stripping out volatile food and energy costs, also beat estimates by rising 0.3% on a monthly basis and 2.6% annually, compared to anticipated figures of 0.2% and 2.5%, respectively.
These data points intensified worries that persistent inflation could trigger continued monetary policy tightening, thereby dampening appetite for risk-on assets.
US Treasury yields and the greenback both advanced in the wake of the inflation figures, generating added headwinds for Ethereum.
The 10-year Treasury yield climbed as high as 5.32% prior to pulling back toward 5.22%. Concurrently, the US Dollar Index pushed past 102.80, reaching levels not seen since April 2025, according to the report.
Elevated Treasury yields enhance the attractiveness of fixed-income instruments, increasing the opportunity cost tied to holding cryptocurrencies. Meanwhile, a robust dollar frequently exerts downward pressure on dollar-priced crypto tokens.
In tandem, the probability of a Federal Reserve interest rate hike at the upcoming October meeting climbed from 22% to 35%, derived from CME FedWatch metrics referenced in the source.
This adjustment in market pricing reinforced expectations for tighter monetary conditions, leaving Ethereum exposed to further liquidation.
ETH long positions account for most liquidations
Ethereum’s pullback also flushed leveraged market participants out of their trades. Figures from CoinGlass indicate that $293.98 million in ETH liquidations occurred over the preceding 24 hours.
Long positions represented 90% of that aggregate amount, revealing that traders betting on upward price action absorbed the brunt of the downturn.
This latest wash-out followed choppy conditions on Tuesday, which eliminated roughly $120 million worth of Ethereum long trades.
Successive waves of long liquidations underscore the acute stress bearing down on bullish leverage. Forced liquidations can further accelerate price drops when falling collateral values spark subsequent position closures.
Simultaneously, onchain metrics indicate that potential selling pressure is accumulating outside the derivatives sector.
Ethereum netflows on exchanges have held in positive territory since Sunday, maintaining a trend observed through the prior week, per CryptoQuant figures cited in the article.
Positive netflows signify that inflows of ETH to exchanges outpace outflows. Such activity often signals that holders are gearing up to sell, although mere deposits do not serve as definitive proof that sales have taken place.
When paired with mounting long liquidations, this dynamic leaves Ethereum grappling with pressure originating from both leveraged structures and potential spot-market supply.
Ethereum faces resistance below $2,563
Ethereum’s daily chart retains a bearish short-term bias, with pricing sitting underneath its 50-day Exponential Moving Average of $2,498 alongside its 20-day EMA of $2,563.
The initial hurdle to any recovery is the 50-day EMA. Beyond that, horizontal resistance positioned at $2,548 alongside the 20-day EMA establishes an extra barrier against sustained upward movement.
Clearing this resistance zone would direct attention toward $2,636, followed by subsequent overhead resistance near $2,781.
Market momentum continues to look sluggish. The 14-day Relative Strength Index hovers around 38, while the Stochastic Oscillator sits near 7, pointing toward oversold territory. These metrics could pave the way for a temporary pause or a brief relief bounce, though they do not signal a structural trend reversal.
The underlying analysis points to a recent close near $2,432 as an immediate point of reference, whereas ETH’s trading price of approximately $2,430 places it slightly underneath that level.
Further down on the charts, horizontal support at $2,355 lines up closely with the 100-day EMA at $2,353, establishing a critical support zone.
Defending this region would preserve a broader technical safety net despite the weak near-term outlook. A decisive breakdown underneath it, however, could expose lower downside targets at $2,204 and $1,971.
At present, any prospect of an Ethereum recovery hinges on buyers stepping in to stabilize the asset and reclaim resistance levels overhead while inflation concerns and selling pressures persist.
Short FAQs
Why did Ethereum drop below $2,400?
Ethereum dipped below $2,400 following a hotter-than-expected US inflation report for September, which spurred broader crypto market sell-offs, higher Treasury yields, and increased expectations of Federal Reserve rate hikes.
How much were the total ETH liquidations?
CoinGlass data showed $293.98 million in ETH liquidations over a 24-hour period, with long positions accounting for 90% of the total losses.
What are the key support and resistance levels for Ethereum?
Key support sits in the $2,353–$2,355 range (aligned with the 100-day EMA), while resistance barriers stand at the 50-day EMA ($2,498), horizontal resistance at $2,548, and the 20-day EMA ($2,563).
