Ethereum Price Moves Above $4,000 After Soft US Inflation Data
Ethereum (ETH) briefly climbed above $4,000 on Friday. This followed a US Consumer Price Index (CPI) report showing softer-than-expected inflation for September. The data boosted hopes of future interest rate cuts by the Federal Reserve.
US Inflation Report Boosts Market Optimism
The US Department of Labor Statistics released the September CPI during the government shutdown. Headline CPI rose 3.0% year over year (YoY), lower than the forecast of 3.1%. The Core CPI, excluding food and energy, increased 0.2% month over month (MoM), below the projected 0.3%. Core inflation rose 3.0% YoY, under the 3.1% forecast.
This CPI print is key ahead of the Fed’s October 29-30 meeting. Market predictions now show an 85% chance of two more rate cuts by the end of 2025. Such monetary easing usually benefits cryptocurrencies and stocks.
- Ethereum open interest rose to 11.75 million ETH, the highest since October 10.
- The S&P 500 hit a new all-time high of 6,806 on Friday.
- However, cautious sentiment remains amid ongoing US-China trade tensions.
Ethereum Price Outlook: Resistance at $4,100 and Support Near $3,470
Ethereum saw $69.4 million in futures liquidations in the last 24 hours, with $41.4 million from long positions. ETH is consolidating between $3,800 and $4,100. It faces resistance near $4,100, reinforced by the 50-day Exponential Moving Average (EMA).
If ETH breaks above $4,100, it could test the $4,500 level. On the downside, support levels are near $3,815, $3,660, and $3,470.
Indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) signal bearish momentum currently.
