Ethereum (ETH) Price Crashes Below $2,000 as Bulls Fail to Counter Liquidation Wave

Ethereum (ETH) price tumbled below $2,000

U.S. inflation continued to slow in February, according to the latest Producer Price Index (PPI) data released on Thursday.

The figures showed that Producer Prices fell to 147.95 points this month from 147.98 points in January. Economists polled by Reuters had expected PPI to rise to 148.3 points.

The reports showed that Prices less food, energy, and trade commodities fell by 0.2%, compared to expectations for a 0.1% decline. Meanwhile, PPI for food rose by 0.8%, aligning with estimates.

In the past year, PPI for all commodities surged by 2.7%, closely tracking economists’ projections. However, PPI less food, energy, and trade commodities decreased by 0.3%, whereas economists had anticipated a 0.4% drop.

The latest data comes a day after the U.S. Bureau of Labor Statistics confirmed that the Consumer Price Index (CPI) also fell more than expected in February.

The reports sparked optimism across risk assets, helping major cryptocurrencies like XRP, BNB, and PEPE break key resistance levels.

However, despite the latest inflation reports and broader market recovery, Ethereum has decoupled from the broader market recovery phase, pinned down by internal bearish catalysts.

Why Is Ethereum Price Decoupling From Broader Market Recovery?

As reported by TokenInsight, recent months have seen fragility in Ethereum’s price action, with upward momentum struggling to gain traction.

This downturn began after Ethereum’s price action stalled at the $2,200 resistance, despite the broader crypto market attempting to recover from the 2024 lows.

After a two-month decline, the bears appeared to lose their grip as Bitcoin (BTC) and major altcoins finally broke through the main Fib resistance at $2150 (for BTC) and $2000 (for ETH).

The latest inflation data sparked optimism across risk assets, helping major cryptocurrencies like XRP, BNB, and PEPE break key resistance levels.

However, despite the broader market optimism, Ethereum has decoupled and continues to chart a bearish path.

Why Is ETH Price Down Despite Easing US Inflation?

The U.S. Bureau of Labor Statistics confirmed on Thursday that Producer Prices in the United States declined to 147.95 points in February from 147.98 points in January 2025.

Economists polled by Reuters had expected this figure to rise to 148.3 points, while analysts had predicted a 0.2% decline in Prices less food, energy, and trade commodities. The reported figure aligned with economists’ expectations.

The reports showed that Prices less food, energy, and trade commodities fell by 0.2%, compared to expectations for a 0.1% decline. Meanwhile, PPI for food rose by 0.8%, aligning with estimates.

In the past year, PPI for all commodities surged by 2.7%, closely tracking economists’ projections. However, PPI less food, energy, and trade commodities decreased by 0.3%, whereas economists had anticipated a 0.4% drop.

The latest data comes a day after the U.S. Bureau of Labor Statistics confirmed that the Consumer Price Index (CPI) also fell more than expected in February.

The reports sparked optimism across risk assets, helping major cryptocurrencies like XRP, BNB, and PEPE break key resistance levels.

However, despite the latest inflation reports and broader market recovery, Ethereum has decoupled from the broader market recovery phase, pinned down by internal bearish catalysts.

As reported by TokenInsight, recent months have seen fragility in Ethereum’s price action, with upward momentum struggling to gain traction.

This downturn began after Ethereum’s price action stalled at the $2,200 resistance, despite the broader crypto market attempting to recover from the 2024 lows.

After a two-month decline, the bears appeared to lose their grip as Bitcoin (BTC) and major altcoins finally broke through the main Fib resistance at $2150 (for BTC) and $2000 (for ETH).

The latest inflation data sparked optimism across risk assets, helping major cryptocurrencies like XRP, BNB, and PEPE break key resistance levels.

Despite this, Ethereum has decoupled and continues to chart a bearish path.

Why Is ETH Plunge Continuing Despite CPI Surprise?

Despite the latest inflation signals, Ethereum recorded its third consecutive daily decline this week.

At press time, ETH had fallen to $1,850, marking a 3% drop on Thursday alone. The downward trend accelerated after ETH plunged from $2,819 on Tuesday to a low of $1,759 on Thursday, a staggering 35% decline in 48 hours.

Zooming out, historical data shows that ETH price has not