Ethereum Meltdown: ETH Flash Crashes, Next Stop $1,800?
Ethereum is flash crashing, falling by nearly 35% from July peaks. As it is, ETH may lose $2,000 and drop to as low as $1,800
Ethereum, mirroring the Bitcoin drop, is flash-crashing. Despite the general optimism among holders that the coin will rip higher, easing past resistance levels, this has not been the case. If anything, the coin risks breaching $2,000, a multi-month support line, and crashing even harder to $1,800 and lower.
The path of least resistance is southwards. After the drop in the second half of last week, Ethereum is down nearly 35% from July 2024 highs. If ETH loses $2,000, there could be more panic selling. Over the past day, the coin has been down 20% amid expanding rising volume that stands at over $50 billion.
Traders are closely monitoring the following trending Ethereum news:
- The drop in Bitcoin and increasing spot Ethereum ETF outflows is accelerating the sell-off. By the end of last week, outflows stood at nearly $170 million, most stemming from Grayscale’s ETHE.
- BlackRock’s tokenization product on Ethereum, BUIDL, paid out $2.1 million in dividends in July. Through this product, investors can get exposure to tokenized United States Treasuries. The product currently manages over $520 million.
Ethereum Price Analysis
From the daily chart, it is evident that sellers are in control.
As mentioned, ETH/USD is down 35% from July highs.
The downtrend is clear and will likely continue in the days ahead.
Notice that prices broke the $2,500 and $2,800 levels, signaling bear pressure.
Since sellers are dominant, traders can consider shorting on every attempt higher below $2,500, targeting $1,800.
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