Ethereum Surges Past $2,400 Amid Inflation Data and Upcoming Scaling Test

Ethereum has recovered above the $2,400 level after experiencing a temporary decline towards $2,340, driven by a stronger-than-expected US wholesale inflation report. The September Producer Price Index (PPI) rose 6.3% annually, surpassing forecasts, while core PPI increased by 5%.

The initial drop in Ethereum's price coincided with rising inflation concerns and a retreat in US Treasury yields, which fell to 5.095%, their lowest since late September. This decline in yields, along with a drop in the US Dollar Index, has created a more favorable environment for cryptocurrency recovery.

Despite the rebound, Ethereum faces resistance levels between $2,496 and $2,552, while support remains around $2,355. Momentum indicators suggest a slight easing of bearish pressure, but a confirmed trend reversal is not yet established.

In addition to the price movements, Ethereum is preparing for a significant scaling test on October 26, known as the Glamsterdam test, which aims for a target of 200 million gas. The activation date for the mainnet remains undecided.