Ethereum Price Falls Below $2,400 as Inflation Fears Trigger $294 Million in Liquidations
Ethereum fell below $2,400 as stronger-than-expected U.S. inflation data intensified selling pressure across cryptocurrency markets, while nearly $294 million in ETH positions were liquidated over 24 hours. Rising Treasury yields, a stronger U.S. dollar, and increased expectations of a Federal Reserve rate hike added to the pressure on the second-largest cryptocurrency.
ETH traded near $2,370 at the time of the report, down approximately 5.3% over the previous 24 hours. The decline reflected a combination of macroeconomic concerns, forced liquidations among leveraged traders, and potential selling pressure indicated by rising exchange inflows.
U.S. Inflation Data Weighs on Ethereum Price
September's Consumer Price Index (CPI) increased 0.6% month over month, matching expectations but accelerating from August's 0.4% rise. Annual headline inflation reached 3.7%, exceeding the 3.6% forecast and rising from the previous reading of 3.4%.
Core inflation, which excludes food and energy prices, also came in above expectations. The measure increased 0.3% monthly and 2.6% annually, compared with forecasts of 0.2% and 2.5%, respectively.
The figures renewed concerns that persistent inflation could prompt further monetary tightening, potentially weakening demand for risk-sensitive assets such as cryptocurrencies.
U.S. Treasury yields climbed following the inflation release, with the 10-year Treasury yield reaching 5.32% before retreating toward 5.22%. The U.S. Dollar Index also moved above 102.80 for the first time since April 2025, according to the report.
Higher Treasury yields can make interest-bearing investments more attractive relative to cryptocurrencies, while a stronger dollar can add pressure to dollar-denominated digital assets. These developments created an additional headwind for ETH as traders reassessed the monetary policy outlook.
According to CME FedWatch figures cited in the source, the probability of a Federal Reserve rate increase at its October meeting rose from 22% to 35%. The shift in expectations reinforced concerns about tighter financial conditions.
Ethereum Long Liquidations Reach $293.98 Million
Ethereum's price decline triggered substantial losses among traders using leverage. CoinGlass data showed $293.98 million in ETH liquidations over the previous 24 hours, with long positions accounting for 90% of the total.
The imbalance indicates that traders betting on higher prices absorbed most of the forced closures. The latest episode followed volatile trading on Tuesday, when approximately $120 million in Ethereum long positions were liquidated.
Repeated liquidation events can intensify downward price movements. As ETH falls, the value of collateral supporting leveraged positions declines, potentially triggering additional forced sales and accelerating losses among bullish traders.
Ethereum Exchange Inflows Add to Selling Concerns
Potential selling pressure is also emerging from activity outside the derivatives market. CryptoQuant data cited in the source indicated that Ethereum's exchange netflow had remained positive since Sunday, continuing a pattern observed during the previous week.
Positive exchange netflow means more ETH is entering exchanges than leaving them. Such movements can indicate that holders are preparing to sell, although exchange deposits alone do not confirm that tokens have been sold.
The combination of elevated long liquidations and sustained positive exchange netflow leaves Ethereum exposed to pressure from both leveraged positions and potential spot-market supply.
ETH Support at $2,353–$2,355 Faces a Key Test
Ethereum's daily chart points to a bearish near-term outlook, with the price trading below its 50-day Exponential Moving Average (EMA) at $2,498 and its 20-day EMA at $2,563.
The $2,498 level represents the first major recovery hurdle. Above it, resistance around $2,548 and the 20-day EMA near $2,563 could make further gains difficult. A sustained move through this resistance area would bring $2,636 into focus, followed by another potential barrier near $2,781.
Momentum indicators remain weak. The 14-day Relative Strength Index (RSI) stands around 38, while the Stochastic Oscillator is near 7, indicating oversold conditions. These readings could allow a pause in selling or a short-term rebound, but they do not independently confirm a reversal.
The analysis identifies a recent close near $2,432 as an immediate reference point, while the quoted ETH price of approximately $2,430 was marginally below that level.
Further down, horizontal support at $2,355 aligns closely with the 100-day EMA at $2,353, forming an important technical zone. Holding this area could help preserve longer-term support despite the weakness in short-term momentum.
A decisive break below the $2,353–$2,355 zone could expose Ethereum to further declines toward $2,204 and then $1,971.
For now, Ethereum's recovery prospects depend on whether buyers can stabilize the price and reclaim key moving averages. Persistent inflation concerns, changing Federal Reserve rate expectations, leveraged liquidations, and potential exchange selling remain important factors shaping the cryptocurrency's near-term direction.
source: coinjournal
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
Check out other news and articles on Google News
Disclaimer:
The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.