Ethereum in A Bull Flag: With Support At $2,500, what’s next for ETH?

Ethereum, mirroring the general state of affairs across the crypto scene, is also stable and moving sideways. Even though there is a slight recovery now that prices are above the $2,500 level, it is below the all-important $2,700 mark. In the days to come, traders can watch how price action evolves from current levels. Since the coin is within a bear breakout formation and mostly capped by the bear bars of August 4 and 5, buyers must be more convincing.

Since Ethereum is moving sideways, it shows in how prices are trending. The coin is mostly stable in the past day and week. Technically, candlestick formation supports bulls. However, there are also fundamental factors that may spark demand in the days to come. Before then, prices must move sharply either above the local resistances or below support for trend definition. Once this happens, trading volume will roar, rising from the average $10.2 billion of the last day.

Ethereum traders are closely watching the following trending news events:

• While spot Ethereum and Bitcoin ETFs post inflows, one VC is bullish about what lies ahead. Claiming that their TVLs will rise, the VC thinks Ethereum will also overtake the BTC product.
• One of Ethereum’s top Layer-2 platforms, Optimism, is back to using permissioned fault proofs while announcing a hard fork. The decision follows an audit that found vulnerabilities.

Ethereum Price Analysis

ETH/USD is stable at press time though bulls are resilient.

At press time, resistance is at around the $2,700 and $2,800 area.

On the flip side, support is at $2,100, marking August lows.

Until there is a break in either direction, traders can stay on the sidelines.

If buyers take over, confirming the bulls of August 8, ETH may fly to $3,500 in a buy trend continuation pattern.

Conversely, losses below $2,500—or the base of the current flag, reversing gains of August 12, will question the strength of the uptrend.

In that case, Ethereum may dip to August lows in a bear trend continuation formation.