ETH slides under $2,400 as inflation data triggers sell-off and leverage wipeout

Main takeaways

• After stronger-than-expected US inflation rattled crypto markets, Ethereum slipped below $2,400, falling 5.3% in 24 hours.
• ETH faced additional pressure from climbing Treasury yields, a strengthening dollar, and increased expectations of rate hikes.
• Support is located near $2,353–$2,355, while resistance at $2,498 and $2,548 may hinder any rebound.

Ethereum slides on inflation data boosting rate hike fears

On Thursday, Ethereum deepened its drop beneath $2,400 after US inflation came in hotter than anticipated, prompting fresh selling throughout crypto markets.

At the time of writing, the second-ranked digital asset was changing hands around $2,370, roughly 5.3% lower over the past day.

The CPI for September increased 0.6% from the prior month, in line with forecasts but faster than August's 0.4% gain. On an annual basis, headline inflation stood at 3.7%, exceeding the 3.6% estimate and climbing from 3.4%.

Core inflation, stripping out food and energy, also beat forecasts. It advanced 0.3% month over month and 2.6% year over year, versus predictions of 0.2% and 2.5%.

The data stoked worries that stubborn inflation might lead to additional policy tightening, reducing appetite for risk assets.

After the inflation report, US Treasury yields and the dollar both firmed, adding to the headwinds facing Ethereum.

The 10-year note yield rose to 5.32% then pulled back to around 5.22%. The dollar index, meanwhile, breached 102.80 for the first time since April 2025, the report noted.

Rising bond yields make yield-bearing assets more attractive, boosting the opportunity cost of crypto holdings. A firmer dollar can also pressure dollar-denominated cryptocurrency prices.

Meanwhile, the implied probability of a rate hike at the Fed's October meeting climbed from 22% to 35%, per CME FedWatch data.

That reassessment bolstered expectations of tighter financial conditions, leaving Ethereum exposed to more selling.

Long ETH trades dominate liquidation totals

The drop also liquidated leveraged positions. Data from CoinGlass shows $293.98 million worth of ETH was liquidated in the past 24 hours.

Longs represented 90% of that figure, showing that traders betting on higher prices bore the brunt of the losses.

These liquidations came after Tuesday's volatile session, which erased around $120 million in ETH longs.

Consecutive rounds of long liquidations underscore the strain on leveraged bulls. Forced selling can extend a downturn as dropping collateral prompts additional closures.

On-chain data points to possible selling pressure emerging beyond the derivatives market.

According to CryptoQuant, Ethereum's exchange netflow has been positive since Sunday, extending a pattern seen the prior week.

A positive netflow signals that more ETH is flowing into exchanges than out, which may indicate holders gearing up to sell, though deposits alone don't confirm sales.

Together with increasing long liquidations, this trend leaves Ethereum under pressure from leveraged positioning and possible spot supply.

Ethereum encounters resistance beneath $2,563

The daily chart shows a bearish near-term tilt, with the price below the 50-day exponential moving average at $2,498 and the 20-day EMA at $2,563.

The initial resistance is the 50-day EMA. Beyond that, horizontal resistance at $2,548 and the 20-day EMA present additional obstacles to a sustained rally.

A push above that zone would put $2,636 in sight, then resistance around $2,781.

Momentum is subdued. The 14-day RSI is near 38, and the stochastic oscillator is around 7, pointing to oversold territory. While these levels could allow a pause or short-term bounce, they don't signal a trend reversal.

The analysis notes a recent close near $2,432 as a near-term reference, though ETH's current quote of roughly $2,430 sits just below that.

Lower down, horizontal support at $2,355 aligns closely with the 100-day EMA at $2,353, forming a key support area.

Defending that zone would maintain a longer-term technical buffer even amid a weak short-term view. A clear break below it could open up the next targets at $2,204 and $1,971.

For the time being, Ethereum's recovery prospects hinge on buyers steadying the price and reclaiming overhead resistance while inflation fears and selling pressure continue.