Ethereum Struggling Despite Confident Bulls Aiming For $2,800: Will Grayscale Succeed?

Ethereum is in green but has been moving inside a tight range, looking at the formation in the daily chart. Despite the high hopes, bulls must confirm their presence by closing above the immediate liquidation zone at $2,800. There are several catalysts that might move prices, including the rapidly growing Ethereum ecosystem marked by a spike in the number of layer-2s launching. Although some analysts think these off-chain solutions are extractive, their role in scaling the legacy chain is evident. Unless there is a sharp turn in trend, reversing Q2 and 3 losses, sellers will still have the upper hand.

After the refreshing surge on October 14, bulls have failed to follow through. At present, support is at $2,300, while resistance is at $2,800. Even though ETH might benefit from rising Bitcoin, sellers are strong, and on-chain, layer-1 developments are not as exciting as far as incentives to validators are concerned. For now, the average trading volume of the last day is decent at over $16 billion.

The following trending Ethereum news could shape price action:

• Larry Fink of BlackRock thinks Ethereum will continue to play a crucial role. The asset manager is already tokenizing treasuries on the largest smart contracts platform.
•  After finding success in spot Bitcoin and Ethereum ETFs, Grayscale is now seeking to convert its blended fund into an ETF.

Ethereum Price Analysis

ETH/USD is steady at press time.

As it is, ETH prices are still inside the bull bar of October 14—a net positive.

Traders can consider longing the dip provided prices stay above $2,300. If bulls take over, the first target will be $2,800, and later, $3,000.

If not, and prices collapse below $2,300 after unwinding Monday gains, Ethereum might easily slide to August lows.

Before then, risk-off traders can wait on the sidelines until there is trend definition.