Ethereum Price Forecast: ETF drops to $2,000 as October CPI comes in hot

Ethereum price stands at $2,040 today

• October's CPI inflation reading exceeded forecasts, sending Ethereum towards $2,000 on Tuesday.
• Following six consecutive weeks of outflows, ETH ETFs remained under pressure.
• A break below support at $2,100 leaves ETH vulnerable to a decline to $1,970.

Rising US inflation, alongside outflows from exchange-traded funds (ETFs), put pressure on the market on Tuesday, driving Ethereum (ETH) down towards $2,000.

Ethereum deepens decline as strong CPI lifts expectations of a Fed rate rise

A 4% decline over the past 24 hours took the leading altcoin's weekly losses to almost 11%. Liquidations in ETH futures reached $254.8 million as a result, with long positions accounting for $193.3 million of the total.

October's Consumer Price Index (CPI) inflation figures exceeded expectations ahead of the decline. According to the Bureau of Labor Statistics, the index increased 0.4% on the month, against a forecast of 0.3%. A 0.3% month-on-month rise in core CPI also surpassed the 0.2% estimate. Annual inflation figures were not released by the BLS because of the government shutdown in October 2025.

Expectations of a rate rise at the Federal Reserve's (Fed) forthcoming December meeting have surged following the inflation release. The CME FedWatch tool put the probability of a 25 basis point increase at 90.5%, with the likelihood of a 50 basis point rise climbing to 9.5%.

When interest rates are high, risk assets, including cryptocurrencies, typically underperform.

Separately, SoSoValue data showed net outflows of $184.5 million from US spot ETH ETFs on Monday, the largest daily withdrawal in more than a month. Weekly flows have remained negative since the start of October, with last week marking the sixth consecutive week of net outflows.

Ethereum technical outlook: ETH breaks below support at $2,100

Trading below the 20-, 50- and 100-day Exponential Moving Averages (EMAs), ETH retains a bearish short-term bias on the daily chart. These averages are grouped between approximately $2,270 and $2,360, suggesting that rallies are likely to encounter resistance for as long as the pair stays below them.

With the 14-day Relative Strength Index (RSI) slipping towards oversold territory near 30 and the Stochastic Oscillator sitting in the low teens, the indicators point to stretched downward momentum rather than confirmation of a reversal.

Any recovery would first encounter resistance at $2,101, then a more substantial hurdle around $2,204, ahead of $2,250 and the 20-day EMA near $2,269. Beyond these levels, a concentrated supply zone comprises the 100- and 50-day EMAs at $2,332 and $2,359, together with nearby horizontal resistance at $2,355. Further barriers lie at $2,548, $2,636 and $2,781.

Immediate support lies at $1,971; a breach would bring the next important floor around $1,827 into view.

(The technical analysis of this story was written with the help of an AI tool. Know more.)