Ethereum Price Drops Below $2,700 as Weak US Jobs Report Fails to Boost Sentiment

Ethereum's price has retreated below $2,700 after a weak US jobs report failed to boost market sentiment. The Ethereum price had risen to $2,770 on Friday, its highest level in over a week, but quickly reversed after the data was released. The US Nonfarm payrolls data for September showed the economy added 29,000 jobs, well below market expectations of 90,000, with the Unemployment Rate ticking up to 4.2%, slightly above forecasts.

The weak jobs data and inflation reading have decreased expectations of a rate hike in the Federal Reserve's (Fed) October meeting to 23.8% at the time of writing, down from above 70% a few days earlier, according to the CME FedWatch Tool. Despite declining rate-hike expectations, US 10-year note yields have remained strong, regaining strength after an initial decline to 5.15% in reaction to the weak jobs data.

US spot ETH exchange-traded funds (ETFs) have posted three consecutive days of net outflows, totaling $117.7 million, per SoSoValue data. ETH Exchange Netflows, which tracks the net difference between coins flowing in and out of exchanges, show traders are slightly leaning toward selling amid recent range-bound movements.

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.