"Inflation data is the ultimate liquidator of the crypto market! Last night's 300-point waterfall in ETH was just the first drop of blood in the Fed's interest rate hike script!"
What happened last night? A 'data hunting ground' with a tug-of-war between bulls and bears
Last night at 10 PM, when the US inflation expectation stabilized at 4.9%, the ETH price plummeted from $4580, falling 300 points to $4364 within 6 hours, with over $520 million in liquidations across the network—this is not just a simple technical correction, but a 'precise strike' by macro data on the crypto market.
Core logic chain breakdown:
PPI data early warning: The PPI increased by 3.3% year-on-year two days ago (exceeding expectations by 0.6%), indicating inflation stickiness;
Inflation expectations become the trigger: A 4.9% inflation expectation directly crushes market fantasies of the Fed's rate cuts in September. In a high-interest-rate environment, liquidity in the crypto market is continuously drained;
Technical adjustment: $4500 is both a historical accumulation zone and the resistance level of the 4-hour MA30 moving average, where bears have laid a 'net trap'.

Current battlefield: The 'life and death chess game' at $4500
As of 10 AM, ETH rebounded to around $4470, but both bulls and bears are still in fierce confrontation at the $4500 mark.
Bearish iron triangle:
Historical accumulation graveyard: The $4500-$4580 range is stacked with over $830 million in short positions;
Technical pressure: The 4-hour MA30 moving average and the daily Bollinger middle band form double resistance;
Psychological threshold: $4500 is the 50% retracement level of this rebound. If the bulls lose this level, it will trigger a chain reaction of stop-loss orders.
Bullish lifeline:
Spot ETF fund flow: BlackRock's ETH ETF had a net inflow of $120 million yesterday, indicating that institutions are still accumulating at low levels;
On-chain data: Whale addresses increased their holdings by 17,000 ETH in the past 24 hours, with an average cost of $4420.
Today's battle map: Data-driven 'high sell, low buy'
Plan 1: Bearish dominance (below $4500)
Entry point: Gradually short at $4480-$4500, stop loss at $4520;
Target level: First target $4450, second target $4360 (strong support);
Risk control: If the price breaks through $4520 with volume, immediately go long.
Plan 2: Bullish counterattack (effective breakthrough of $4500)
Entry point: After stabilizing above $4500, lightly chase longs, stop loss at $4460;
Target level: $4580 → $4630;
Black swan warning:
22:30 US natural gas inventory: If the data exceeds expectations (implying a resurgence of energy inflation), it may trigger a correlated decline in the crypto market and commodities;
On-chain movements: Monitor whether whale addresses like 0xAaf are transferring large amounts of ETH to exchanges