Ethereum Bulls Defiant, Expect Sharp Bounce Even As Sellers Target $2,100

Ethereum is wavy at press time, looking at the performance in the daily chart. The path of least resistance is southwards as long as prices are trending below $2,500. This level is the former support, now resistance, marking the base of the bull flag. Unless there is an influx of buying pressure, lifting ETH above local resistances, sellers will be in a commanding position. Going by recent trends, there is no discounting the possibility of the coin dropping to as low as August lows.

As Ethereum struggles for momentum, sellers are in firmly in charge. On average, the second most valuable coin is up 4% in the past day but down by the same margin in the last week. At the same time, trading volume is decent, averaging $18 billion on the last day. Of all, traders remain optimistic, but this outlook will quickly change if there is another sharp drop today, forcing the coin to fall below $2,100.

Traders are closely watching the following Ethereum news:

• Though Ethereum and Bitcoin prices are down, more users are creating new stablecoin wallets. Over the last few months, USDT continues to grow in strength, looking at new wallets. The same trend can be seen in the number of DAI addresses.
• Even with prices falling, one analyst thinks ETH will dip in the short term, possibly testing the $2,000 region. However, after this, prices will rise sharply, clearing 2024 highs.

Ethereum Price Analysis

ETH/USD is under pressure at press time.

The immediate resistance is at the $2,500 level.

On the lower end, the bear target and price line of concern is at $2,100.

With the bear bar of August 27 leading, aggressive traders can align with the developing trend, shorting on every attempt higher.

The first target is $2,100 or August lows.

If sellers press on, the second level of interest will be $1,800.

However, if bulls flow back, Ethereum bulls need to break $2,800. Afterward, the coin may conquer $3,500 in a buy trend continuation formation.