Ethereum faces high selling pressure

Ether fell more than 5% on the day due to high anxiety in the cryptocurrency market.

The decline in ETH prices coincides with the start of a busy week for the US economy, as the Federal Reserve is expected to announce a rate cut on Wednesday, September. 18.  Ethereum’s price fluctuated between $2,000 and $4,000 throughout 2024.

The altcoin momentarily fell below $2,200 during the August flash crashes. It has since returned to levels not seen since January.

In reaction to institutional demand from the Spot Ethereum ETF, the second-largest altcoin has not yet seen gains. Technically speaking, to prevent further weakness shortly, the price of Ethereum relative to the US dollar needs to recover from the current support level.

Approximately 1.9 million Ethereum addresses bought 52.3 million ETH between $2,290 and $2,360, according to on-chain data analysis provided by IntoTheBlock, serving as a significant support level.

Ether’s price hasn’t seen meaningful upsides even though spot Ethereum ETFs have been approved in the US and other countries. The US spot Ether ETFs have experienced losses for five weeks running.

As evidenced by the latter’s market dominance, Ethereum’s price has continued to bleed to Bitcoin, and the US spot Bitcoin ETFs have received a better reception. Experts predict a significant bullish rebound that will usher in the expected parabolic alt season, given that the ETH/BTC pair has dropped by more than 53% since September 2022.

The odds are 41 percent for a rate cut of 25 basis points and 59 percent for a larger cut of 50 basis points. Analysts at Bitfinex forecast earlier this month that the cryptocurrency market may decline because of the US central bank’s widely anticipated rate cut. Furthermore, as the mainstream media reports, former US President Donald Trump has escaped what appears to have been a second attempt at his life.

Trump escaped unscathed, and Ryan Wesley Routh, 58, was apprehended as the suspect who had left the scene. Given the spike in cryptocurrency prices that followed the presidential candidate’s most recent assassination attempt in mid-July, it is unclear if the incident had any effect on the ETH markets.