- Ethereum’s price is struggling at $2,368 amid weak US jobs data and significant selling pressure from hackers and the Ethereum Foundation.
- Despite some optimism from a potential rate cut, ETH faces bearish momentum with critical support at $2,252 and a psychological level at $2,000.
Ethereum’s price today stands at $2,368, following a weaker-than-expected US Nonfarm Payrolls (NFP) report. The smart contract token is grappling with bearish pressures after the latest Bitcoin crash, which pushed ETH below two critical support levels. Investors are now debating whether Ethereum will decline further or manage a recovery rally.
Can US Nonfarm Payrolls Prevent Ethereum Price from Bearish Outlook?
Revised data shows the US added 25,000 fewer jobs in August than initially reported, with the total falling from 114K to 89K. While this data is not inherently bullish, traders are factoring in a 50% chance of a 50 basis point rate cut in September. Consequently, investors are eyeing Ethereum’s price, which currently hovers around $2,400, anticipating a retest of the $2,548 level.
Despite the lower job data, traders are optimistic due to the decrease in the US unemployment rate from 4.3% in July to 4.2%. This marks the lowest level since June and the first decline after four consecutive months of increases. As a result, the days leading up to the Federal Reserve’s rate cut decision on September 18 might remain bullish for Ethereum. However, Bitcoin’s signs of exhaustion could dampen this optimism and extend the ongoing downtrend.
Can ETH Bulls Sustain $45 Million Selling Pressure?
According to Lookonchain data, three hackers recently transferred 17,800 ETH, worth $42 million, to Tornado Cash, a popular cryptocurrency mixer. Transfers to such mixers often indicate an intention to sell the tainted funds. Additionally, the Ethereum Foundation deposited 1,000 ETH, worth $2.3 million, to a multi-signature wallet, a move historically followed by converting ETH to DAI, an ETH-based stablecoin.
Ethereum’s price prediction hints at a weak outlook, as ETH recently flipped two key levels on the daily timeframe:
- The yearly Volume Weighted Average Price’s (VWAP) lower limit of $2,583
- A key support level of $2,548
These levels coincide, and a breakdown indicates increased bearish momentum and a lack of buying pressure. The weak NFP report, selling pressure from hackers, the Ethereum Foundation’s transfer of ETH to centralized exchanges, and sales by Ethereum co-founder Vitalik Buterin have all hindered ETH’s ability to rise.
Bearish Indicators and Potential Rebound
Technical indicators like the Relative Strength Index (RSI) and Awesome Oscillator (AO) showed declining bearish momentum from mid-August to early September. However, bulls have failed to take control since the start of the new month, which is evident in both the indicators and price action.
If the current outlook persists, investors might see ETH trigger a short-term correction to the intermediate support level of $2,252. The intervention of sidelined buyers at this level is crucial. If they fail to act, the next critical support is the psychological level of $2,000.
Conversely, a bounce from $2,252 or a sudden surge in buying pressure that lifts Bitcoin could invalidate Ethereum’s bearish outlook. Should ETH manage to flip the $2,548 and $2,582 resistance levels into support, it could attract more investors and potentially lead to a recovery rally toward $3,000.
