Ethereum Price Drops Below $2,700 as Weak Jobs Report Dampens Market Sentiment

Ethereum's price has declined below $2,700 after a weak US jobs report failed to lift market sentiment. The data showed the economy added 29,000 jobs in September, well below the expected 90,000. This has led to a decline in rate-hike expectations, with the CME FedWatch Tool showing a 23.8% chance of a rate hike in the Federal Reserve's October meeting, down from above 70% earlier.

The US PCE data for August also came in below market expectations, printing at 3.4% YoY, well below expectations of 3.7%. Despite declining rate-hike expectations, US 10-year note yields have remained strong, initially declining to 5.15% in reaction to the weak jobs data but regaining strength to 5.28%.

ETH ETFs have posted three straight days of outflows, totaling $117.7 million, per SoSoValue data. This trend is evident in ETH Exchange Netflows, which tracks the net difference between coins flowing in and out of exchanges.

Ethereum is now approaching the 20-day Exponential Moving Average (EMA) at $2,631 after suffering a rejection at the $2,786 resistance. The next support is seen at the $2,626 horizontal level, followed by $2,544 and then $2,431, where earlier demand aligns with the underlying EMA structure.