Ethereum Slips 6% As Gas Fee Crashes: Will ETH Bears Break $2,000?

Ethereum is fast-dropping and deflating any buying momentum, per the formation in the daily chart. Although the launch of spot Ethereum ETF was seen as a massive endorsement for the second most valuable coin, outflows have reversed all gains. At the same time, all momentum from May seems to be fading. As it is, the local support—an important one in that case—stands at around the $2,000 round number. Sellers are on top, and the downtrend could continue this week.

Traders are closely monitoring how prices evolve. However, from the look of things, sellers are in charge. Prices remain stable in the past day but down 6% in the previous week. Amid the dropping prices, there is a visible contraction in the average trading volume, recently at around $12 billion.

Ethereum Daily Chart for September 9

Amid weak ETH price action, traders are closely watching the following trending news:

  • Galaxy Digital researchers note that dropping mainnet revenue due to falling gas fees and decreasing fees on layer-2s is risky. In their assessment, it could pose a risk to the long-term security of the layer-1 network. Validators depend on gas fees and block rewards to offset their operating costs.
  • Janet Yellen, the United States Treasury Secretary, is upbeat about the health of the economy. In her view, the country is at no risk of a recession. Arthur Hayes, the co-founder of BitMEX, thinks the government will resort to money printing.

Ethereum Price Analysis

ETH/USD is down at press time and inches away from crucial support.

As things stand, every high may offer entries for sellers targeting $2,100 or lower.

Notice that sellers completely reversed the gains of August 8.

In a bear breakout formation, ETH bears might look to confirm these losses.

This outlook remains as long as prices remain inside the September 7 bear bar.

Any recovery thrusting the coin above $2,500 will reinforce bulls eyeing $3,300.

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ABOUT THE AUTHOR See More
Dalmas Ngetich
Dalmas Ngetich
Technical Analyst and News Reporter
Dalmas is a technical analyst and news reporter covering Forex, commodities, crypto, NFTs, blockchain, DeFi, and blockchain.
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