Ethereum drops almost 6% after US inflation beats expectations and liquidations surge

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Ethereum drops 5.64% today on volatility

Highlights

Ethereum saw renewed demand with $24.8 million in net inflows to US spot ETFs, particularly Grayscale and Fidelity offerings.
Interactive Brokers made Ethereum staking available and network security remains a priority as Vitalik Buterin drives ongoing development.
Strong downside technical momentum persists with ETH/USD trading at $2,362, a five-day range projected at $2,245 to $2,498, and sellers controlling price action.

ETF inflows and staking offset liquidations amid macro headwinds

Ethereum recorded heightened volatility following the release of stronger-than-expected US inflation figures, which resulted in significant liquidations across crypto markets. After ten days of net outflows, US spot Ethereum ETFs saw $24.8 million in net inflows on October 13, mainly into the Grayscale Ethereum Mini Trust and Fidelity FETH. Interactive Brokers also introduced Ethereum staking services, while a major early investor secured profits from dormant holdings and development on the network continued with founder Vitalik Buterin prioritizing improved network security. These developments were accompanied by macroeconomic headwinds such as rising US Treasury yields and a stronger dollar, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, highlights ongoing selling pressure on Ethereum as it stays below key moving averages. He notes that despite brief ETF inflows and new staking services, net sentiment remains negative as technicals and momentum indicators reinforce downside risk. Kharitonov focuses on the dominance of sellers, with oversold signals failing to provide relief amid persistent liquidations. He warns that macroeconomic headwinds and profit-taking by early investors add further stress. "Traders should exercise caution as the lower $2,318 support may come under renewed pressure in the current risk-off phase."

Viktoras Karapetjanc, expert at Traders Union, sees recent ETF inflows and expanding Ethereum staking as constructive shifts supporting long-term adoption. He finds the retention above the 200-day moving average a sign that the bullish structure is intact despite short-term volatility. Karapetjanc points to Vitalik Buterin's security focus and ongoing development as positive catalysts. He expects the market to offer multiple setups following this pullback. "With network growth and institutional products gaining traction, I remain confident that Ethereum will soon reclaim momentum above $2,400."

Jainam Mehta, market strategist, observes that macro risks are setting the tone, but oversold indicators may trigger a tactical rebound. He notes divergence between persistent seller dominance and underlying long-term support at the 200-day average. Mehta suggests a contrarian setup could emerge if ETH stabilizes near $2,318 while global sentiment cools. "Any bounce above $2,403 could offer a fast trade toward $2,498 within this volatility band."

Short-term selling pressure as technical indicators signal oversold

ETH/USD trades below its 20-day ($2,614) and 50-day ($2,556) moving averages, but remains above the 200-day ($2,141), indicating short- to medium-term selling pressure with long-term underlying support. The near-term ceiling is set at $2,403 and the floor at $2,318, with Ichimoku Kijun ($2,606) as distant overhead resistance and the MA-50 vs MA-200 alignment confirming a bullish long-term trend framework. Momentum indicators show strong selling dominance, with both the MACD and ADX forecasting further downside. The RSI at 38.45, CCI at -117.98, and Stochastic RSI near 3.44 all suggest oversold conditions. Bull/Bear Power at -12.91 and the Awesome Oscillator both point to sellers dominating intraday momentum.

Previously it was reported that Starknet was considering transitioning away from Ethereum's layer-2 ecosystem to pursue greater quantum-resistant security. As Ethereum faces sustained selling pressure amid challenging macro conditions, a decisive move above $2,403 or a breakdown below $2,318 will likely set the tone for its next directional move.

Source of Data: ETH Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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