Ethereum dips below $2,400 as hot inflation fuels selling and long liquidations

Key takeaways

• Ethereum fell below $2,400, dropping 5.3% in 24 hours as higher-than-expected US inflation data rattled cryptocurrency markets.
• Surging Treasury yields, a strengthening US dollar, and heightened expectations of interest rate hikes applied further downward pressure on ETH.
• Crucial technical support is located near $2,353–$2,355, while resistance at $2,498 and $2,548 presents key hurdles for any recovery efforts.

Ethereum retreats as inflation raises rate hike concerns

Ethereum deepened its downturn on Thursday, slipping beneath $2,400 after hotter-than-projected US inflation data triggered renewed selling across the digital asset space.

The market’s second-largest cryptocurrency was changing hands around $2,370 at the time of writing, marking a loss of roughly 5.3% over the prior 24 hours.

Consumer Price Index data for September showed a monthly increase of 0.6%, meeting forecasts but accelerating from August’s 0.4% pace. Headline inflation on an annualized basis reached 3.7%, topping the projected 3.6% and surpassing the previous month’s 3.4% reading.

Core CPI, which excludes volatile food and energy costs, also came in hotter than anticipated. It rose 0.3% on the month and 2.6% over the year, against consensus estimates of 0.2% and 2.5%, respectively.

The hotter figures intensified anxieties that lingering inflationary pressures could push central bankers toward further monetary tightening, dampening demand for risk-sensitive assets.

Following the report, US Treasury yields and the greenback both advanced, piling more stress on Ethereum.

The 10-year Treasury yield briefly spiked to 5.32% before moderating toward 5.22%. Concurrently, the US Dollar Index pushed past 102.80 for the first time since April 2025, according to the report.

Rising yields boost the attraction of yield-bearing instruments, raising the opportunity cost associated with holding non-yielding cryptocurrencies. Additionally, a stronger dollar tends to weigh directly on dollar-denominated digital tokens.

At the same time, market pricing for a Federal Reserve interest rate hike at its October meeting jumped from 22% to 35%, according to CME FedWatch metrics cited in the source.

This shift underlined projections for prolonged tight monetary conditions, leaving Ethereum prone to additional downside.

ETH long positions account for most liquidations

The price drop forced heavy liquidations among leveraged market participants. Figures from CoinGlass indicate that $293.98 million in ETH positions were wiped out over the 24-hour period.

Bullish traders bore the brunt of the fallout, with long positions accounting for 90% of total liquidations.

This shakeout follows a volatile session on Tuesday, which saw nearly $120 million in Ethereum longs liquidated.

Repeated cascades of long liquidations underscore the strain on leveraged bullish bets. Cascading forced sales can magnify price declines as plummeting collateral values compel further automatic closures.

Onchain indicators suggest selling pressure may also be mounting in spot markets.

Data from CryptoQuant referenced in the article reveals that Ethereum’s exchange netflow has stayed positive since Sunday, extending a trend observed throughout the preceding week.

Positive netflows reflect more ETH being deposited onto exchanges than withdrawn. While exchange inflows often signal that investors are preparing to sell, deposits alone do not guarantee immediate transactions.

Nevertheless, combined with substantial long liquidations, this metric indicates ETH is coping with combined pressure from both derivative liquidations and potential spot supply.

Ethereum faces resistance below $2,563

From a technical perspective, Ethereum’s daily chart retains a short-term bearish bias, with price action remaining below both the 50-day Exponential Moving Average ($2,498) and the 20-day EMA ($2,563).

The 50-day EMA represents the primary overhead barrier to a rebound. Beyond that, horizontal resistance at $2,548 and the 20-day EMA present a tough resistance zone against sustained upward movement.

A successful push above this region would bring $2,636 into view, followed by higher resistance near $2,781.

Momentum indicators remain sluggish. The 14-day Relative Strength Index sits around 38, while the Stochastic Oscillator stands near 7, signaling oversold conditions. While these metrics might allow for a temporary pause or modest bounce, they do not confirm a broader trend reversal.

The report points to the recent daily close near $2,432 as an immediate benchmark, though ETH was trading slightly below that level around $2,430.

On the downside, horizontal support around $2,355 coincides closely with the 100-day EMA at $2,353, forming a critical floor.

Defending this zone would preserve Ethereum’s broader technical foundation despite current weakness. Conversely, a clear breakdown beneath it could open the door to lower support levels at $2,204 and $1,971.

For the moment, Ethereum’s path toward recovery hinges on buyers establishing a floor and reclaiming overhead resistance while broader inflation concerns and selling pressures persist.