Ethereum Pinned Down By Sellers: Will ETH Collapse Below $2,100?
Ethereum is down at press time, losing 10% in the past week. With ETH below $2,400, it may crumble to $2,100 or worse, $1,800
Ethereum remains in a tight trade range, looking at the formation in the daily chart. Even though there is optimism that bulls might flow back, the state of price action points to weakness. So far, sellers are in control, which will remain unchanged as long as prices are inside the October 1 bear bar. Technically, the local resistance has been shifted lower to around $2,700, or October 1 high. Any recovery lifting ETH above this line will be a huge endorsement for bulls. On the flip side, losses forcing the coin below $2,400 by the end of the day could trigger a sell-off with targets at August lows.
The state of affairs, especially in the daily chart, points to caution. Although there were hints of strength, the primary trend is bearish and will be so if prices are below the $2,700 resistance. With prices sliding on the past day, ETH is also down 10% in the previous week amid decent trading volume of around $20 billion in the last 24 hours.
Traders are watching out for the following Ethereum news:
- In the past three months, there have been net outflows in Ethereum of around $800 million. Although some of its layer-2 solutions, like Arbitrum, also saw net outflows, others, like Base and OP Mainnet, attracted capital.
- Ethereum might be slow and struggling to scale, but on-chain data shows that nine chains anchored on the legacy chain are already making profits. Cumulatively, these chains have generated over $140 million in the last year.
Ethereum Price Analysis
ETH/USD is down at press time.
From a top-down preview, the general trend remains bearish, and the coin is in a downtrend.
From the daily chart, the coin is in range.
Losses below $2,400, as is currently the case, open up Ethereum to $2,100, $2,000, and worse, $1,800.
As sellers are in charge, aggressive traders can choose to ride the emerging trend, targeting $2,100.
However, a recovery, lifting the coin above $2,700 at the back of rising volume, may see ETH soar to $3,000 in a buy trend continuation formation.
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