Ethereum Free-Falling As ETHSOL Ratio Flies To All-Time High: Why Are ETH Holders Selling?

Ethereum bears are unyielding. At spot rates, the coin is underperforming Bitcoin and may slide below $2,300. Overall, sentiment and emerging concerns about the extractive nature of layer-2s are net negative, denting holder confidence. The technical candlestick arrangement also doesn’t support bulls for now unless there is a close above $2,800. Before then, the probability of ETH hitting $2,100 is higher than bulls shaking off sellers and forcing prices to $3,000. In light of these developments, risk-off traders can wait until there is a clear trend definition, aware that losses below $2,100 would usher in a new phase for the second most valuable coin.

Not only is ETH within a narrow range when writing, but sellers of October 23 are dominant. Ethereum buyers are struggling to contain sellers, explaining the dip over the past week to over 5%. Since prices are falling and trailing Bitcoin and even Solana, capital is flowing away. In 24 hours, the average trading volume is around $15 billion.

Amid deteriorating sentiment, traders are keeping track of the following trending Ethereum news events:

• Ethereum is trailing Solana, as SOL stretches ETH to all-time highs. On the other hand, the ETHBTC ratio is at a 3-year low, and likely bottoming.
• After Uniswap, Kraken plans to launch its new Ethereum layer-2, Ink. While positive, the question of whether validators will benefit from this Offchain boom tapping on Ethereum’s superior decentralization and security is yet to be seen.

Ethereum Price Analysis

ETH/USD is printing discouraging lower lows.

ETH is down, breaching $2,500. A confirmation of the October 23 dip is likely to trigger a sell-off to $2,300.

Aggressive traders may be aligned with Wednesday’s drop, selling on every attempt to reach a high but below $2,600, targeting $2,300.

This stance will only change if Ethereum flies above September highs, buoyed by expanding trading volume.