Ethereum dropped 2.4% to $1,872 after its initial rally on July's inflation data faded, pulling the token back below $1,900. The decline leaves ETH testing the $1,875 support zone, with liquidation data pointing to a much larger cluster of leveraged positions above $1,945.
Ethereum fell 2.4% from an intraday high of $1,918 to $1,872 on Aug. 13, erasing its initial gain from the latest U.S. inflation report and pulling the token below the psychological $1,900 level. ETH traded near $1,879 at the time of writing, according to crypto.news.
The U.S. Bureau of Labor Statistics reported that headline inflation rose 0.1% month over month and 3.4% from a year earlier in July, while core inflation increased 0.2% monthly and 2.5% annually. All four readings matched forecasts, so the report removed the risk of a surprise but gave traders no new reason to extend Ethereum's advance.
Selling accelerates through $1,887
The sell-off accelerated after ETH slipped through the $1,887 area, where thin liquidity let the price fall quickly toward $1,872 before buyers attempted to stabilize the market. Ethereum has repeatedly failed to close above $1,925 since late July. The weakness also mirrored the broader market: Bitcoin remained near $64,000 after the same inflation data.
A weaker fee burn adds pressure
Ethereum's fee economy remains a separate source of pressure. Layer 2 networks have cut transaction costs and expanded capacity, but cheaper activity also reduces the fees the main network burns to remove ETH from circulation. An academic study covering data through March 2026 found Ethereum mainnet median fees had fallen from more than $2 to below $0.02, while Layer 2 median fees declined by more than 95%.
Technicals point to $1,875 as the line
The daily chart places Ethereum around the $1,875 Murrey Math level, the bottom of its trading range since late July, while the daily Chaikin Money Flow reading stood at -0.04, showing capital tilted slightly toward sellers. On the 4-hour chart, ETH traded below the Bollinger Band midpoint at $1,888, with the upper and lower bands near $1,919 and $1,857. The Relative Strength Index read 45.15, below its signal line and the neutral 50 mark, leaving room for another decline if $1,875 fails.
Liquidation map flags $1,950 and $1,835
CoinGlass's one-week liquidation heatmap shows the largest nearby cluster of leveraged positions between $1,945 and $1,955, with additional liquidity near $1,925 and $1,970 that could pull price higher if short positions are forced to close. Downside liquidity is thinner but visible around $1,850 and between $1,835 and $1,840. Trader Ted Pillows said Ethereum needs to reclaim resistance near $1,920 before attempting a move toward $2,000, and marked $1,830 to $1,875 as the next support region.
Ethereum's short-term structure remains neutral-to-bearish below $1,920. Holding $1,875 could support another attempt at $1,950, but a decisive 4-hour close below $1,857 would increase the risk of a move toward $1,835.
Source: crypto.news
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