Ethereum Ceiling: Will the Massive $70 Million Spot ETF Outflows Keep Prices below $2,800?

Ethereum is stable but lower at press time. After the impressive spike on September 23, the slowdown over the last day is a concern, especially after considering the general weakness the coin has shown in the better part of Q3 2024. Although there are pockets of strength, the downtrend remains, at least in the short term. What’s needed for ETH to break out and print a new trajectory is a clean close above $2,800. As it is, the zone between $2,400 and $2,800 is a liquidation area that has proven stubborn for buyers to overcome.

Traders expect the coin to fly in the coming sessions, shaking off the recent weakness. All the same, and as aforementioned, there is strong resistance between $2,400 and $2,800. For now, ETH is stable, adding nearly 13% in the previous week. At the same time, the average trading volume is shrinking, dropping to $17 billion in the last 24 hours.

The following trending Ethereum news events are worth watching:

• ETH might be firm, but there are massive outflows from its spot ETFs. According to trackers, over $79 million of ETH-backed shares were redeemed on September 23. The more ETH is withdrawn, the more intense the selling pressure is.
• Polymarket, the Ethereum-based predictions market, is looking to raise funds and may launch a token, according to some observers. Reports indicate that the platform is seeking $50 million.

Ethereum Price Analysis

ETH/USD might be down when writing but still trending above $2,400.

At the same time, ETH is banding along the upper BB, pointing to strong volatility.

As long as prices are above $2,400, aggressive, risk-on traders can consider buying the dips, targeting $2,800.

If fundamental factors, especially rising outflows, dent confidence, traders should watch out for whether sellers will reverse September 23 gains.

Should this be the case, ETH might retest $2,400.

Any uptick in demand, lifting Ethereum above $2,700 would be the tailwinds needed for the coin to fly above $2,800 in a buy trend continuation formation.