Ethereum Drops Below $2,400 Amid Rising Inflation and Market Liquidations

Ethereum has seen a significant decline, trading below $2,400 as of October 15, 2026. The cryptocurrency dropped approximately 5.3% in a single day, primarily due to stronger-than-expected inflation data from the US, which has raised concerns about potential monetary tightening.

The Consumer Price Index (CPI) for September revealed an annual inflation rate of 3.7%, surpassing the anticipated 3.6% and marking an increase from August's 3.4%. This unexpected rise in inflation has led to fears that the Federal Reserve may maintain higher interest rates for an extended period, which tends to dampen enthusiasm for riskier assets like cryptocurrencies.

In addition to Ethereum, other altcoins such as XRP and Solana also experienced declines, with both tokens dropping around 5%. The overall crypto market faced approximately $972 million in liquidations, with Ethereum accounting for a significant portion of this figure. Long positions, in particular, were heavily impacted, indicating that many traders had bet on rising prices.

As inflation concerns mount, the 10-year US Treasury yield has approached 5.3%, contributing to a stronger dollar and further pressure on crypto prices. The probability of a Federal Reserve rate increase at its upcoming meeting has also risen, adding to the uncertainty in the market.

Technical analysis shows that Ethereum faces immediate resistance around $2,498 and $2,563, while key support levels are identified at $2,353–$2,355. The current market dynamics suggest that Ethereum's recovery will depend on stabilizing prices and overcoming these resistance levels.