Key takeaways
- Ethereum traded below $2,400, down 5.3% over 24 hours, after stronger-than-expected US inflation unsettled crypto markets.
- Higher Treasury yields, a stronger dollar and rising rate hike expectations added pressure to ETH.
- Key support sits around $2,353–$2,355, while resistance at $2,498 and $2,548 could challenge recovery attempts.
Ethereum retreats as inflation raises rate hike concerns
Ethereum extended its decline below $2,400 on Thursday as stronger-than-expected US inflation triggered renewed selling across cryptocurrency markets.
The second-largest cryptocurrency traded near $2,370 at the time of the report, losing approximately 5.3.% over the previous 24 hours.
September’s Consumer Price Index rose 0.6% month-over-month, matching expectations but accelerating from August’s 0.4% increase. Annual headline inflation reached 3.7%, above the 3.6% forecast and up from 3.4% previously.
Core inflation, which excludes food and energy prices, also exceeded expectations. The measure rose 0.3% monthly and 2.6% annually, compared with forecasts of 0.2% and 2.5%, respectively.
The figures increased concerns that persistent inflation could prompt further monetary tightening, weakening demand for risk assets.
US Treasury yields and the dollar strengthened following the inflation release, creating additional headwinds for Ethereum.
The 10-year Treasury yield climbed to 5.32% before easing toward 5.22%. Meanwhile, the US Dollar Index moved above 102.80 for the first time since April 2025, according to the report.
Higher Treasury yields increase the relative appeal of interest-bearing assets, raising the opportunity cost of holding cryptocurrencies. A stronger dollar can also weigh on dollar-denominated crypto prices.
At the same time, the probability of a Federal Reserve rate increase at its October meeting rose from 22% to 35%, based on the CME FedWatch figures cited in the source.
That repricing reinforced expectations of tighter financial conditions, leaving Ethereum vulnerable to further selling.
ETH long positions account for most liquidations
Ethereum’s decline also forced leveraged traders out of positions. CoinGlass data shows $293.98 million in ETH liquidations over the previous 24 hours.
Long positions accounted for 90% of that total, indicating that traders positioned for higher prices absorbed most of the losses.
The latest liquidations followed Tuesday’s volatile trading, which wiped out approximately $120 million in Ethereum longs.
Successive rounds of long liquidations highlight the pressure on bullish leveraged positions. Forced selling can amplify a price decline when falling collateral values trigger further position closures.
Onchain data suggests potential selling pressure is also building outside the derivatives market.
Ethereum’s exchange netflow has remained positive since Sunday, continuing a pattern seen during the previous week, according to CryptoQuant data cited in the article.
Positive netflow means more ETH is entering exchanges than leaving them. Such movements can indicate that holders are preparing to sell, although deposits alone do not confirm that sales have occurred.
Combined with rising long liquidations, the trend leaves Ethereum facing pressure from both leveraged positioning and potential spot-market supply.
Ethereum faces resistance below $2,563
Ethereum’s daily chart maintains a bearish near-term bias, with the price below its 50-day Exponential Moving Average at $2,498 and its 20-day EMA at $2,563.
The first recovery hurdle is the 50-day EMA. Above that, the horizontal resistance at $2,548 and the 20-day EMA form a further barrier to sustained gains.
A recovery through this area would bring $2,636 into focus, followed by resistance near $2,781.
Momentum remains weak. The 14-day Relative Strength Index stands around 38, while the Stochastic Oscillator is near 7, indicating oversold conditions. Those readings could support a pause or short-term rebound, but they do not confirm a downtrend reversal.
The source analysis identifies the recent close near $2,432 as an immediate reference, although ETH’s quoted price of about $2,430 puts it marginally below that mark.
Further down, horizontal support at $2,355 closely aligns with the 100-day EMA at $2,353, creating an important support zone.
Holding that area would preserve a longer-term technical cushion despite the weak short-term outlook. A decisive break beneath it could expose the next downside levels at $2,204 and $1,971.
For now, Ethereum’s recovery prospects depend on buyers stabilizing the price and reclaiming overhead resistance as inflation concerns and selling pressure persist.
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