Ethereum recovered above $2,400 after a hotter-than-expected US producer inflation report briefly pushed it toward $2,340. Falling Treasury yields and a weaker dollar supported the rebound, while support stands near $2,355 and resistance begins at $2,496.
Ethereum recovered above $2,400 on Friday after a stronger-than-expected US wholesale inflation report briefly sent it toward $2,340. The cryptocurrency first declined alongside other risk assets, then bounced as Treasury yields and the dollar retreated.
The trigger was September's Producer Price Index, which increased 1.3% month-over-month and 6.3% annually. Forecasts called for 0.5% and 5.3%, respectively.
Core PPI, which excludes food and energy prices, rose 0.7% monthly and 5% annually, against forecasts of 0.3% and 4.4%. The figures followed Wednesday's hotter-than-expected Consumer Price Index release, which added to concerns about persistent inflation and the outlook for monetary policy.
Yields and the dollar retreat
Ether's rebound came as the US 10-year Treasury yield fell to 5.095%, its lowest level since September 22. The US Dollar Index also reversed its post-CPI gains, falling to approximately 102.04 at the time of writing.
Together, the retreat in yields and the dollar gave the broader cryptocurrency recovery a more supportive backdrop, even as inflation concerns remained unresolved.
Support at $2,355, resistance from $2,496
On the daily chart, Ethereum recovered from the area around its 100-day Exponential Moving Average at $2,356 and horizontal support at $2,355. Buyers are now trying to hold the recovery above $2,411.
The Relative Strength Index edged up to 40.9, while the Stochastic Oscillator stood near 25. Both suggest immediate bearish pressure has eased, although they do not establish a confirmed trend reversal.
The first upside obstacle is the 50-day EMA at $2,496, followed by horizontal resistance at $2,548 and the 20-day EMA at $2,552. On the downside, a daily close below the 2,355–2,356 area could expose support at $2,204, followed by $1,971 and $1,827 if selling continues.
Source: CoinJournal
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