Ethereum drops 2.4% below $1,900 as CPI reaction fades

Ethereum fell 2.4% to an intraday low of $1,872 on Aug. 13 as traders sold the initial U.S. inflation reaction, leaving the token below the $1,900 psychological level and testing a key daily support zone.

Analyst Ted Pillows said Ethereum must reclaim resistance around $1,920 before it can attempt a move toward $2,000, with his chart marking support at $1,830-$1,875 and deeper downside areas near $1,700 and $1,550.

The U.S. Bureau of Labor Statistics reported headline inflation rose 0.1% month over month and 3.4% from a year earlier in July, with core inflation up 0.2% monthly and 2.5% annually — all four readings matched market forecasts. An expected result removed the risk of an inflation surprise but gave traders no new reason to extend the advance.

Ethereum's failure to retain its CPI-related gains mirrored weakness in the broader crypto market, with Bitcoin near $64,000 after the data. A daily close below $1,850 would expose the 50-day SMA near $1,810, while a decisive 4-hour close below $1,857 increases the risk of a move toward $1,835.

CPI data leaves ETH dependent on technical support

Ethereum had climbed into the report, reaching about $1,918 before profit-taking took control. The sell-off accelerated after ETH slipped through the short-term $1,887 area, with thin liquidity below that level allowing the price to fall quickly toward $1,872 before buyers attempted to stabilize the market.

The daily chart places Ethereum directly around the $1,875 Murrey Math level, identified as the bottom of its current trading range. Daily Chaikin Money Flow stood at -0.04, showing capital flows had moved slightly in favor of sellers. The 4-hour Relative Strength Index was 45.15, below its signal line at 45.99 and the neutral level of 50, indicating weak momentum without oversold conditions.

Liquidation map points to $1,950 and $1,835

CoinGlass's one-week liquidation heatmap shows the strongest nearby liquidity concentration above Ethereum's current price, with a bright cluster extending across approximately $1,945-$1,955 and additional leveraged positions near $1,925 and $1,970. Downside liquidity is less concentrated but remains visible around $1,850 and $1,835-$1,840.

Daan Crypto Trades remained constructive while Ethereum held its current support, focusing on the ETH/BTC pair where 0.03 BTC was identified as the level needed to confirm further relative strength. ETH/BTC had broken above a long-running descending trendline and was testing its daily 200-day moving averages.

Structural concerns surrounding Ethereum's fee economy remain another source of pressure. An academic study covering data through March 2026 found that Ethereum mainnet median fees had fallen from more than $2 to below $0.02, while Layer 2 median fees declined by more than 95%. Lower transaction costs benefit users, but the weaker burn rate has made ETH's supply narrative less compelling during periods of muted demand.

For U.S. traders, the next move will remain sensitive to changes in Federal Reserve expectations. July's CPI readings did not materially alter the policy outlook, leaving ETH dependent on technical support, derivatives positioning, and incoming U.S. economic data. Ethereum's short-term structure remains neutral-to-bearish below $1,920, with holding $1,875 supporting another attempt at $1,950.

This article is for informational purposes only and does not constitute investment advice.