Ethereum Price Forecast: Why has ETF dropped to $2,000 after October's hot CPI reading?

Ethereum price today: Can ETH hold at $2,040?

• Selling pressure took Ethereum towards $2,000 on Tuesday following a hotter-than-expected October CPI inflation reading.
• 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.

Selling pressure dragged Ethereum (ETH) towards $2,000 on Tuesday, with rising US inflation and outflows from exchange-traded funds (ETFs) weighing on sentiment.

Can Ethereum stem losses as hot CPI lifts Fed rate-hike expectations?

Weekly losses for the leading altcoin widened to nearly 11% after a 4% slide over the past 24 hours. ETH futures liquidations consequently reached $254.8 million, led by $193.3 million in long positions being liquidated.

October's stronger-than-anticipated Consumer Price Index (CPI) inflation report preceded the sell-off. According to the Bureau of Labor Statistics, CPI increased 0.4% month-on-month against a forecast of 0.3%, while core CPI rose 0.3%, exceeding the monthly estimate of 0.2%. Annual inflation figures were not released by the BLS because of the government shutdown in October 2025.

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

A high interest rate environment typically weighs on the performance of risk assets, including cryptocurrencies.

Adding to the pressure, Monday saw US spot ETH ETFs register net outflows of $184.5 million, their biggest single-day withdrawal in more than a month, according to SoSoValue data. These products have recorded weekly net outflows since the start of October, with last week marking the sixth consecutive week of withdrawals.

Ethereum technical outlook: What's next after ETH breaks $2,100 support?

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

Rather than signalling a confirmed reversal, momentum indicators suggest that the downside move is becoming stretched. The 14-day Relative Strength Index (RSI) has slipped towards oversold territory around 30, while the Stochastic Oscillator remains in the low teens.

Any recovery would first face resistance at $2,101, followed by a more substantial hurdle near $2,204. Beyond that lie $2,250 and the 20-day EMA around $2,269. A concentrated supply zone sits higher, comprising the 100- and 50-day EMAs at $2,332 and $2,359, respectively, alongside horizontal resistance at $2,355. Further upside barriers stand at $2,548, $2,636 and $2,781.

For a further decline, $1,971 provides the nearest support. A breach would bring the next important floor around $1,827 into focus.

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