Ethereum Shaky: Will Massive Spot ETF Outflows Force ETH Below $2,100?
Ethereum is down when writing. Outflows from spot EFTs could see ETH slide below $2,100 and August lows now that bears are in charge
Ethereum is moving sideways amid a generally bearish market, looking at how prices have been acting over the past few weeks. From a top-down approach, Ethereum is down, aligning with the bearish breakout formation of July 2024. The climactic collapse in early August toward $2,100 is a concern. It may be confirmed if bulls fail to sustain the upside momentum. Technically, the immediate support and resistance levels to watch out for are at $2,100 and $2,800. Since bears are in charge and in line with the July candlestick, the odds of ETH tumbling below August lows cannot be discounted.
Traders are confident, but buyers are yet to breeze past local resistance levels. The coin is up 12% from September lows but below $2,800. Meanwhile, the support is at $2,300 and $2,100. As buyers attempt to shake off weaknesses, it is down 8% in the previous week. Even so, what’s encouraging is the expansion in trading volume, standing at over $16 billion.
Ethereum traders are monitoring the following trending news:
- Last week, all spot Ethereum ETFs in the United States posted outflows. Most are from the Grayscale ETHE that is being wound up. Even as clients load up these shares, the bleed from ETHE means net flows remain negative at over $30 million in the previous week.
- The uptrend remains, looking at the formation in the weekly chart. Despite the series of lower lows, buyers have a chance. However, this will change if there is a break below the local support, at between $1,800 and $2,100.
Ethereum Price Analysis
ETH/USD is down at press time.
Still, as long as resistance is at $2,800, the path of least resistance is southwards.
Accordingly, every high might offer entries for sellers targeting $2,100 and $1,800.
This sell-off might be accelerated should the support at $2,300 be broken.
Conversely, any uptrend lifting Ethereum above $2,800 will see the coin soar to $3,000 and $3,500.
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