ETH May Fall to $2,200 Amid Rising US Inflation and Foreign Reserves

Ethereum price today: $2,350

• Ethereum price broke above the $2,395 level after the release of US CPI data.
• Ethereum ETFs saw zero flows for the second time this week as bearish sentiment prevails in the market.
• However, the total amount of ETH staked reaching 34.78 million indicates a long-term bullish bias among investors.

Ethereum (ETH) fell 3.8% on Thursday after a surge in US inflation data and a rejection near the 50-day simple moving average (SMA).

Ethereum Falls in Light of Rising US Inflation, Stakers Still Bullish on the Long Term

Ethereum and the crypto market posted a second straight day of losses after September US Consumer Price Index (CPI) data came in stronger than expected.

September inflation eased to 2.4% – but above expectations of 2.3% – while core inflation data ticked up ten basis points from 3.2% to 3.3%.

Meanwhile, Ethereum ETFs saw zero flows for the second time this week on Wednesday as the nine issuers saw no buy/sell activity. This is the third time ETH ETFs have seen zero flows since their launch on July 23rd. The weak flows reflect the current bearish sentiment around Ethereum and the crypto market.

A similar trend is seen in Ethereum currency reserves, which have increased by more than 170,000 ETH in the past six days. An increase in foreign reserves tends to affect the price negatively as it reflects increased selling pressure.

ETH exchange reserve

However, the increasing amount of ETH being staked shows that investors can be optimistic in the long term. According to IntoTheBlock data, 28.9% of the total ETH in circulation – that’s about 34.78 million ETH – is staked through staking protocols. Notably, more than 15.3% of the 34.78 million ETH have been staked for over three years.

ETH Stake Streams

Ethereum Price Forecast: ETH could bounce back from the $2,310 support level

Ethereum is trading around $2,350 on Thursday, down more than 3% on the day after $52.31 million in liquidations – with long and short liquidations accounting for $46.2 million and $6.11 million, respectively, on Coinglass data.

ETH breached the $2,395 support on Wednesday and struggled to recover the level after faltering before the 50-day SMA resistance.

As a result, the top altcoin is trying to drop to $2,310. Failure to reject this level will send ETH to support near the psychological $2,200 level.

ETH/USDT 4 Hour Chart

The Relative Strength Index (RSI) is trending towards its oversold region below 30, while the Stochastic Oscillator (Stoch) is oversold. This indicates a potential correction and a return to the $2,310 level could be in the cards.

A daily close of the candlestick below the psychological level of $2,200 will invalidate the thesis.