Ethereum fell more than 2% in the past 24 hours, trading at $2,062. U.S. inflation data exceeded expectations, reigniting concerns about the Federal Reserve's interest rates. At the same time, ETF capital outflows and leveraged liquidations also increased selling pressure.
Ethereum prices fell by more than 2% to $2,062 after U.S. inflation data exceeded expectations, with the market once again expressing concerns about the Federal Reserve's interest rate outlook.
Ethereum liquidation amount exceeded $258 million, of which long positions accounted for approximately $192 million.
US spot Ethereum ETF recorded a net outflow of $184.6 million on November 9th, with BlackRock leading the way.
According to Lookonchain, on the 7th, Siblings purchased 10,792 units of ETH, while a wallet associated with the Ethereum Foundation sold 1,000 units.
Ethereum prices are facing support around $2,000, with $2,130 and $2,200 potentially being levels for a rebound.
In October, consumer prices rose by 0.4% month-on-month, higher than the expected 0.3%. Core inflation also increased by 0.3%, exceeding the anticipated 0.2%, which has raised market expectations that the Federal Reserve may continue to maintain restrictive monetary policies or even raise interest rates again.
During the same period, Ethereum experienced a greater decline than Bitcoin; Bitcoin fell by about 1% during the same time frame. Before the inflation report on Tuesday put pressure on the market, this cryptocurrency was trading below $2,200.
Why is Ethereum falling today?
Although the overall inflation rate has slowed down from the monthly increase of 0.6% in September, the core CPI remains unchanged at 0.3%. The data shows that despite the slowdown in overall inflation, potential price pressures still exist.
Higher interest rates will suppress cryptocurrencies, as investors can turn to interest-bearing assets that offer relatively predictable returns. When the latest data was released, U.S. stock markets and other major cryptocurrencies also fell simultaneously.
Ethereum's downward trend has also been accompanied by substantial activity in the leveraged derivatives market.
According to CoinGlass, within the 24-hour period of the reporting period, the Ethereum liquidation amount exceeded 258 million US dollars. Long liquidations amounted to 192 million US dollars, accounting for 74% of the total, while short liquidations were 67 million US dollars.
In the entire cryptocurrency market, the total settlement amount was approximately 723 million US dollars, with traders holding long positions bearing most of the losses.
These forced liquidations occurred as Ethereum approached the $2,000 level, a price point that had been tested multiple times during previous sell-offs.
Ethereum ETF outflows and large traders selling increase pressure
Farside Investors data shows that US spot Ethereum ETF recorded a net outflow of $184.6 million on November 9, marking the third consecutive trading day of capital withdrawal.
Among them, ETHA of BlackRock had an outflow of $119.3 million, Ethereum Mini Trust of Grayscale had an outflow of $25 million, and FETH of Fidelity had an outflow of $19.1 million.
As previously reported by crypto.news, despite continuous buying by institutional treasury firm BitMine, Ethereum still fell to $2,120 on November 10.
Meanwhile, blockchain analyst Lookonchain stated that a wallet associated with the Ethereum Foundation sold another 1,000 units of ETH, worth approximately $2.03 million.
According to the same analysis account, this transaction occurred on November 10th after selling 1,000 ETH, worth approximately $2.13 million.
Cryptography analyst Ali Martinez stated that in the past week, large Ethereum holders reduced their holdings by approximately 17,800 ETH, worth nearly 40 million US dollars.
These wallet movements indicate that some holders have engaged in selling behavior, but they do not prove to what extent these transactions contributed to the overall decline in Ethereum's price.
Despite weak market sentiment, Ethereum buyers are still accumulating ETH.
Not all large Ethereum holders reduced their positions during the downturn.
According to Lookonchain, a wallet group known as 7 Siblings purchased 10,792 ETH, spending approximately 22 million US dollars, with an average purchase price of $2,038 per coin.
These purchases occurred when Ethereum was near its recent lows, in contrast to the sales reported by other large wallets.
Meanwhile, Santiment reports that the sentiment regarding cryptocurrencies on X, Reddit, and Telegram is deteriorating.
As ETH approaches the $2,000 support level, Ethereum price outlook
On the daily chart, after Ethereum pulled back from a high of nearly $2,800 in October, it continued to trade below its recent moving average.
Bollinger Bands indicate that ETH is near the lower band of around $2062, which is significantly below the 20-day moving average of $2260.
Meanwhile, the Know Sure Thing indicator is at -107.34, which is below its signal line of -98.87, indicating that the currently measured downward momentum has not yet reversed.
The immediate support level is between $2,040 and $2,060, followed by the recent low of around $2,005.
If it continues to fall below $2,000, the $1,900 range may be tested again; if there is a rebound and it breaks through $2,128, $2,200 will come back into focus.
The next resistance level is around $2,260, near the 20-day moving average.
The October Producer Price Index report is scheduled to be released on November 13th at 8:30 a.m. Eastern Time, providing another inflation reading before the Federal Reserve's December meeting.
Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.
