Ethereum Falls as Inflation Triggers Heavy Long Liquidations

| coinjournal.net
Ethereum fell roughly 5%–6% to around $2,350–$2,370 after hotter-than-expected US inflation data unsettled markets and pushed ETH below $2,400. September CPI rose 0.6% month over month and 3.7% year over year, while core inflation also exceeded expectations. The figures revived concerns about tighter Federal Reserve policy, supporting Treasury yields and the US dollar and weighing on risk assets such as Ethereum. Leveraged selling intensified the move. CoinGlass recorded nearly $294 million in ETH liquidations over 24 hours, about 90% from long positions. CryptoQuant separately reported more than $106 million in Binance ETH longs liquidated in one hour, the exchange’s largest hourly ETH long-liquidation event in six months. Liquidation figures represent the value of positions closed, not traders’ direct cash losses. Positive ETH exchange netflows also pointed to a possible increase in potential selling supply, though transfers to exchanges do not confirm a sale. US spot ETH ETFs saw about $130 million in net outflows on October 14, reversing the previous session’s inflows. Ethereum’s near-term technical outlook remains weak. The latest analysis identifies support around $2,353–$2,355, aligned with the 100-day EMA; an earlier level traders watched was near $2,300. A break below support could bring $2,204 and $1,971 into focus. Resistance sits near the 50-day EMA at $2,498, then around $2,548 and the 20-day EMA near $2,563. Earlier readings put the daily RSI near 34, while oversold momentum may allow a short-term bounce but does not confirm a reversal. Traders are watching whether ETH can reclaim resistance or sustain support amid ongoing macro and derivatives-driven volatility.
Bearish
The combined signals are negative for ETH in the near term. Hotter inflation has renewed concerns that US interest rates may stay higher for longer, a macro backdrop that can reduce demand for risk assets. Heavy long liquidations show that leveraged traders were forced out as prices fell, and can add to volatility and selling pressure. Positive exchange netflows and the reported spot ETH ETF outflows also suggest weaker demand or a greater potential supply overhang, although neither exchange transfers nor one day of ETF flows proves a sustained sell-off. Technically, ETH is trading below $2,400, with support around $2,353–$2,355 and the earlier watched $2,300 area. A sustained break could prompt further selling toward $2,204 and $1,971, while resistance at the moving averages may limit recovery attempts. Oversold RSI readings can support a relief bounce, but are not by themselves evidence of a reversal. Over a longer horizon, the direction of inflation, Fed expectations, ETF flows and the ability of ETH to reclaim resistance will matter more; easing rate concerns and sustained inflows could improve sentiment, while persistent macro pressure and failed support would keep downside risks elevated.