- Ethereum (ETH) is struggling amid a market downturn, with its price falling below $2,400 due to rising bearish sentiment and resistance at key levels.
- The failure of Ethereum Spot ETFs to gain momentum further suggests potential declines, though a bullish reversal could push the price toward $2,800.
The cryptocurrency market is experiencing a significant downturn, marked by a 3.59% liquidation in its global valuation. This dip followed a U.S. stock market correction that saw tech giant Nvidia lose a staggering $279 billion from its portfolio. The aftermath of this market turbulence has affected major cryptocurrencies, including Ethereum (ETH), which has seen its price drop below the $2,400 mark.
ETH Faces Resistance: Will It Bleed or Rebound?
The altcoin leader, Ethereum, has been unable to break out of a critical resistance trendline within a descending channel pattern. This failure has contributed to a 6.18% loss in ETH’s value over the past 48 hours, with the coin’s 24-hour trading volume reaching $15.8 billion. Ethereum recorded a low of $2,313.27, signaling growing bearish sentiment.
The technical indicators further reinforce this outlook. The EMA (Exponential Moving Average) for 50/200 days has shown a consistent decline in the 1D time frame, reflecting a rise in selling pressure compared to buying activity. The Relative Strength Index (RSI) also failed to break its average trendline, leading to a sharp drop in Ethereum’s price. With the RSI hovering below its neutral point, the market sentiment remains weak.
Ethereum Spot ETFs Struggle to Gain Momentum
Adding to the bearish outlook, Ethereum’s Spot ETFs have started September on a down note. On September 3rd, these ETFs recorded their first negative flow day, breaking a streak of two neutral days. Notably, out of nine Ethereum ETFs, only Fidelity’s “FETH” showed a positive flow of $4.9 million. In contrast, Grayscale’s “ETHE” suffered a substantial loss of $52.3 million, resulting in a total flow of -$47.4 million for the day.
Over the last 13 trading days, Ethereum ETFs have recorded negative flows on 11 occasions, accounting for 84.42% of the time. This consistent bearish sentiment suggests that Ethereum’s price could be poised for further declines.
What’s Next for Ethereum?
Looking ahead, if Ethereum fails to break through its current resistance level of $2,530, it could face further downward pressure, possibly testing its crucial support level at $2,175. However, if a bullish reversal occurs, ETH could rebound and target the $2,800 resistance level in the coming weeks.
The market’s direction will largely depend on whether the broader cryptocurrency space can overcome the prevailing bearish sentiment or if further declines are in store.
