Concerns Mount as Ethereum Price Consolidates and Sellers Remain Unrelenting: Will ETH Drop Below $2,100?
The price of Ethereum is facing some challenges despite positive fundamental developments. Traders are concerned about the inability of buyers to push the price above $3,000, leading to consolidation and potential downside risks. There is a possibility of the coin dropping below $2,100 and hitting new lows for the second half of 2024, with sellers showing no signs of relenting.
Outflows from spot Ethereum ETFs are adding pressure on the coin, despite ongoing network improvements and expansion plans to solidify its position in the DeFi and other sectors. At the moment, Ethereum is trading sideways with support at $2,300 and resistance at $2,800. The coin has lost nearly 3% in the past week, with an average trading volume of around $14 billion.
Some key Ethereum news events to watch include the locking of nearly 30% of all ETH in circulation by validators and Vitalik Buterin’s liquidation of meme coins for charity. The price analysis shows that ETH/USD is in a downtrend, with sellers currently in control. Bulls need to defend the $2,300 support level, and a break above $2,800 could present opportunities for aggressive traders to target higher levels.
However, if the bearish trend continues and confirms a bear bar on October 1, Ethereum could easily drop below $2,100 and reach August lows. Traders are advised to monitor the price action closely and be prepared for potential downside risks in the near term.
