Ethereum Meltdown: ETH Flash Crashes, Next Stop $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.