Ethereum Holds Steady at $2,350: Will Bulls Retake Control?
Ethereum Braces for a Potential Drop as Market Sentiment Shifts
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Ethereum (ETH) is currently facing pressure as the broader cryptocurrency market grapples with a decline. The recent drop in Bitcoin and other top altcoins has led to a contraction in the overall market capitalization, which is currently down to $2.17 trillion. While Ethereum has managed to hold above $2,300, the question remains: will this level offer enough support to stem the downward momentum?
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Over the past week, Ethereum has shed 10% of its value, falling below its former support level of $2,400, which has now transformed into resistance. Despite the recent pullback, there are signs of accumulation activity around current price levels. Data from IntoTheBlock indicates that 1.89 million Ethereum addresses purchased approximately 52 million ETH at an average price of $2,350. This substantial buying activity suggests that this price range could act as a strong support level.
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The $2,350 price level aligns with significant Fibonacci retracement levels, namely 61.8% and 78.6%. Historically, cryptocurrencies have often found support at these retracement levels. Therefore, the upcoming price action within the $2,100 to $2,350 range will be crucial in determining the medium-term trend.
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What’s Next for Ethereum?
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If Ethereum manages to bounce back from this potential support zone, it could signal a bullish reversal. In this scenario, ETH could surge above $2,800, with bulls targeting $3,500. However, a sharp decline below the August and September lows could trigger a panic sell-off, pushing ETH below $2,100 and potentially even $2,000. A move below $1,800 would confirm the losses experienced in early August.
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The current market sentiment suggests that sellers are in control. Centralized exchanges have witnessed significant outflows in recent trading sessions, indicating a potential shift in market sentiment. The recent movement of 14,221 ETH from Wintermute, a crypto market maker, to Binance, further highlights this trend. It is worth noting that Wintermute and other market makers, including Jump Capital, sold over 130,000 ETH in August, contributing to the downward price pressure.
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The upcoming price action in the $2,100 to $2,350 range will be crucial for Ethereum’s short-term outlook. While the presence of buying activity at these levels provides some hope, the current market sentiment and recent outflows from centralized exchanges suggest that sellers are still in control. Whether bulls can regain momentum or bears continue to dominate the market will depend on how ETH performs in the coming days.