Ethereum price has dropped below $2,700 as recent US jobs data weakens hopes for an interest rate cut. The wider crypto sector has fallen 10% in the last 24 hours, and the week has fallen 15%. Ether has dropped by 10%, and it is still in a bear market.
There have been over $2 billion in liquidations leading to cascading margin calls. Bitcoin is also not doing very well, continuing around $83,000 with the same percentage of loss. The crypto market is under further pressure as Nvidia’s income prospects are diminishing, and equities are negative. Moreover, both ETFs track Bitcoin and Ethereum have registered four days of outflows in a row, continuing the fall in the market.
U.S. Job Growth Surpasses Expectations
In September, the U.S. economy gained 119,000 jobs, which is much higher than the projected 53, 000. This is a significant improvement on the revised number of 22,000 in August. Nonetheless, the rate of unemployment increased to 4.4, which was marginally above the expected 4.3. It is the highest unemployment rate since October 2021.
The solid employment gains point to the softness in the labor market despite the increase in unemployment. The figures reinforce the case of a possible reduction of interest rates by the Federal Reserve. It is proposed that although the labor market is recovering, it is still challenged.
The Fed will use this report as a guide before the decision that it will make in December. The October job report was canceled because of the government shutdown, hence making the September data even significant.
Ethereum Price Drop: Analyst Predicts Risk
Crypto analyst has indicated that the Ethereum price has fallen below its crucial support of $2,800. Ethereum is trying to recover after dropping to the $2,650 range.
Nevertheless, analysts had warned that unless the price recovers the $2,800 level in the near future, there might be further decline to approximately $2,500. Traders are also keeping a close eye on what is happening as they await the possible changes in the price movement of Ethereum.
Is Ether Price Heading to $2,500 Level?
ETH price crashed at $2,714 today, experiencing a strong bearish drop.
If the Ethereum price holds the support at $2,700, a potential rebound to $2,800 could occur as the future Ethereum outlook is still bullish. However, resistance is expected around the $3,000 level.
If the ETH price fails to maintain support at $2,700, a deeper correction could be in play. The next critical support level to watch is $2,500. A breakdown below this could lead to further downside risk.
Source: ETH.USD 4-hour chart: TradingviewThe MACD is also pointing at negative, where the MACD line is lower than the signal line. This portrays an existing downward trend, or rather, the market is highly inclined towards selling. The RSI is 26.99, and it is nearer to its oversold zone, which means that the downward trend may also progress in case of the persistence of the existing trend persists.
Source: https://coingape.com/markets/ethereum-price-drops-below-2800-as-us-jobs-data-hits-rate-cut-hopes/
