Ethereum Building Momentum, $2,300 Holds Despite Bearish ETH Holders

Ethereum is steady when writing. After gains in the second half of last week, there have been no meaningful gains, looking at price action over the past few trading days. The local support is at $2,300, while it will require a decisive breakout above $2,800, preferably with rising volume, for the uptrend to take shape. Sellers have the upper hand from a top-down preview with an even higher probability of Ethereum dropping below August lows should bulls fail to come through. The uncertainty of the upcoming elections and low inflow into spot Ethereum ETFs remain worrying concerns.

Traders are closely monitoring how prices behave. As ETH consolidates, moving inside the $2,300 and $2,800 chop, a breakout will define the short-term trend. The coin is stable now, and its engagement is below average at less than $15 billion. However, if there is a follow-through of late last week’s gains, trading volume can pick up, providing the necessary liquidity for bulls to conquer $2,800.

The following Ethereum news events are worth tracking:

• A CMC poll shows that 66% of ETH traders and investors are bearish. This preview stems primarily from how prices have printed out in the last few trading weeks. If there is a trend definition aligning with Q1 2024 gains, sentiment will also improve in favor of bulls.
• Andre Cronje, the founder of Yearn Finance—one of the first DeFi protocols and still one of the largest, thinks the increasing number of layer-2s will fragment liquidity. At the same time, Cronje projects even higher costs of operations.

Ethereum Price Analysis

ETH/USD is firm and moving sideways.

The downtrend remains as long as the coin remains below $2,800.

With the local support at $2,300, bulls are supported.

Aggressive traders can consider loading the dips, targeting $2,800 as long as the support remains.

However, any loss below $2,300 invalidates this outlook.

Conversely, any lift-off, preferably with rising volume, can easily lift Ethereum above $2,800 to over $3,000.