FX.co ★ #Ethereum chart analysis

Ethereum (ETH) rebounded to the $2,400 level, recovering technically from its intraday low of $2,340. ETH had previously fallen to around $2,340 following unexpectedly strong US Producer Price Index (PPI) data. The US Bureau of Labor Statistics released its September PPI data, which showed a 1.3% month-over-month increase and a 6.3% year-over-year rise, exceeding market expectations of 0.5% and 5.3%, respectively. The core PPI, which excludes volatile food and energy prices, also rose by 0.7% month-over-month and 5.0% year-over-year, mirroring the strength of the Consumer Price Index (CPI) data released earlier in the week. This string of higher inflation data led to risk aversion among investors in financial markets, causing the total market capitalization of digital assets to drop by approximately $1 billion within 24 hours. As a result, Ethereum incurred leveraged liquidation losses of approximately $286 million, primarily from long positions representing 84% of its total market capitalization. Despite the initial heavy selling, leading altcoins quickly rebounded, mirroring a broader recovery in cryptocurrency assets, driven by a significant revaluation of the US fixed-income market. Institutional investors sold stocks and invested in sovereign debt due to ongoing concerns about capital spending in AI technology stocks, pushing the benchmark 10-year US Treasury yield down to 5.095% on Thursday, its lowest level since September 22. This risk aversion boosted Treasury prices, lowered yields, eased discount pressures on risk-sensitive digital assets, and pushed the US Dollar Index (DXY) down to 102.04. However, institutional demand through regulated spot investment vehicles remained limited. According to SoSoValue tracking indicators, the US Ethereum exchange-traded fund (ETF) saw net outflows of approximately $130 million on Wednesday, exceeding the net inflows of $24.8 million on Tuesday. The fund experienced net redemptions in 11 out of 12 trading days. From a technical analysis perspective on the daily chart, Ethereum's price formed a strong double-convergence bounce near the 100-day exponential moving average and the horizontal support level at $2,355. This pushed the spot price above the pivot point at $2,411 and contributed to stabilizing the short-term price trend. Short-term momentum indicators suggest a slight easing of selling pressure, with the 14-day Relative Strength Index (RSI) rising slightly to 40.9, while the Stochastic Oscillator hovers around 25. On the upside, the immediate technical resistance level is the 50-day exponential moving average (EMA) near $2496, followed by the horizontal resistance level at $2548, and then the 20-day EMA at $2552, which represents a strong ceiling for dynamic supply that buyers must reclaim to reverse the current downtrend. On the downside, the main structural support level lies at the confluence of support levels around $2355. Should the closing price today fall below this level, there is a potential secondary downside target at $2204, followed by deeper structural support zones at $1971 and $1827.