Ethereum (ETH) fell 5.3% over a 24-hour period to trade near $2,370, slipping below the $2,400 threshold as hotter-than-expected US Consumer Price Index (CPI) figures fueled macro risk aversion.
Macro Pressure and Derivative Wipeouts
September headline CPI expanded 0.6% month-over-month, matching estimates but accelerating from August's 0.4% print. Annual inflation reached 3.7%, surpassing the 3.6% forecast and rising from 3.4% previously. Core CPI, excluding food and energy, increased 0.3% monthly and 2.6% annually, topping respective projections of 0.2% and 2.5%. The macro catalyst mirrored conditions seen when US inflation acceleration to 3.7% weighed on broader market sentiment.
Following the economic data release, the 10-year US Treasury yield surged to 5.32% before moderating to 5.22%, while the US Dollar Index pushed past 102.80 for the first time since April 2025. CME FedWatch data indicated that market expectations for a Federal Reserve rate increase at its October meeting climbed from 22% to 35%.
The resulting price contraction squeezed leveraged derivative traders. CoinGlass data showed $293.98 million in ETH liquidations over 24 hours, with long positions accounting for 90% of total wipeouts. This comes on the heels of Tuesday's session, which previously eliminated $120 million in Ethereum longs during similar widespread crypto market liquidations.
Onchain Deposits and Critical Technical Levels
Onchain metrics suggest spot market supply may also be accumulating. CryptoQuant data revealed that Ethereum exchange netflow has remained positive since Sunday, indicating elevated token inflows to centralized exchanges. This follows earlier market weakness when Ethereum dropped below major psychological hurdles amid sustained institutional outflows.
Technically, Ethereum trades below its 50-day Exponential Moving Average (EMA) at $2,498 and its 20-day EMA at $2,563. Key momentum indicators show near-term oversold conditions, with the 14-day Relative Strength Index (RSI) at 38 and the Stochastic Oscillator near 7. Immediate technical support sits between horizontal level $2,355 and the 100-day EMA at $2,353. A breakdown below this cluster opens downside risk toward $2,204 and $1,971, while overhead resistance remains marked at $2,498, $2,548, $2,636, and $2,781.
Key Takeaways
- Ethereum Price: Traded near $2,370, down 5.3% over 24 hours.
- US CPI Inflation: Headline annual CPI hit 3.7% against a 3.6% estimate; core annual CPI reached 2.6%.
- Derivatives Impact: $293.98 million in ETH positions liquidated, with 90% coming from long trades.
- Macro Shifts: 10-year Treasury yield hit 5.32%, DXY crossed 102.80, and October Fed rate hike odds rose to 35%.
- Technical Support: Primary support rests at $2,353–$2,355; primary resistance sits at $2,498.
Why It Matters
The simultaneous surge in Treasury yields and interest rate hike expectations highlights Ethereum's ongoing sensitivity to macroeconomic policy. Repeated waves of long liquidations combined with positive exchange netflows signal that speculative leverage is being unwound while spot supply pressure builds. Traders should closely watch the $2,353–$2,355 support zone, as a loss of this level could trigger further technical selling toward $2,204.
