Ethereum reclaims $2,400 as falling Treasury yields ease inflation pressure

Key takeaways

• Ethereum climbed back over $2,400 after a brief slide toward $2,340 triggered by higher-than-expected US producer price data.
• The Producer Price Index for September increased 6.3% year-over-year, while core PPI reached 5%, with both figures topping market estimates.
• Chart support is holding around $2,355, though a resistance cluster between $2,496 and $2,552 poses a challenge to further upside.

Ethereum rebounds after producer inflation surprise

Ethereum reclaimed the $2,400 level on Friday, reversing a sudden drop toward $2,340 that followed a stronger-than-anticipated report on US wholesale inflation.

September’s Producer Price Index climbed 1.3% month-over-month and 6.3% compared to the prior year, topping analyst predictions of 0.5% and 5.3%, respectively.

Core PPI, which excludes food and energy prices, also ran hotter than expected. It advanced 0.7% on a monthly basis and 5% annually, outpacing forecasts of 0.3% and 4.4%.

Coming on the heels of Wednesday’s higher-than-expected Consumer Price Index data, the numbers intensified anxieties over persistent inflation and the future direction of monetary policy.

While Ethereum initially fell alongside other risk assets, it subsequently mounted a recovery as the US dollar and Treasury yields backed off higher levels.

A heavy concentration of losses among bullish traders highlighted the strain on leveraged positions during the sell-off. Forced position closures can compound selling pressure as declining asset values erode required collateral.

The liquidation figures encompass a full 24-hour window capturing the broader market turbulence surrounding the inflation reports, rather than reflecting only the immediate reaction to Thursday’s PPI data.

The rebound in Ethereum coincided with a drop in 10-year US Treasury yields to 5.095%, marking their lowest level since September 22.

Sinking yields helped ease one source of friction for Ethereum following an earlier spike in borrowing-cost expectations driven by the inflation data.

At the same time, the US Dollar Index surrendered its post-CPI gains, retreating to roughly 102.04 at the time of writing.

Together, the pullbacks in yields and the greenback created a more favorable backdrop for a broader crypto market recovery, even though underlying inflation worries linger.

Ethereum defends $2,355 support but faces resistance

On the daily chart, Ethereum bounced after briefly dipping below its 100-day Exponential Moving Average at $2,356 and a key horizontal support level at $2,355.

Buyers are currently attempting to anchor the price above $2,411, backed by slight improvements in momentum metrics.

The Relative Strength Index ticked up to 40.9, while the Stochastic Oscillator held near 25. Both indicators suggest that immediate downside momentum has moderated, though neither confirms a trend reversal.

The initial roadblock on the path higher is the 50-day EMA at $2,496. Above that level, horizontal resistance around $2,548 and the 20-day EMA at $2,552 form a closely grouped barrier.

Reclaiming those levels would improve the short-term recovery outlook. Conversely, the $2,355–$2,356 zone remains critical; a daily close beneath it could expose Ethereum to support at $2,204, with $1,971 and $1,827 acting as lower cushions if selling accelerates.