Ethereum Struggling As Trading Volume Drops: Bears and Bulls Battling For Dominance
Ethereum is stable when writing. It is higher than August 20, meaning the coin is finding support. Despite the general confidence among holders, the inactivity and flattening trading volume are concerns. In the short term, the local resistance and support remain at $2,800 and $2,500, respectively. At the same time, it is evident that bulls are yet to decisively reverse losses of August 5. Nonetheless, analysts are banking on spot ETFs and institutional demand to lift sentiment and prices in the short to medium term.
As prices move sideways, Ethereum is also flat, looking at performance in the past day and week. For now, trading volume is also low, standing at around $13 billion. Unless there is a spike above the local resistance or support, this drab price action will continue to push away new traders, reducing liquidity.
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Traders are watching the following Ethereum news:
- The upward momentum is fading as capital outflows from spot ETFs continue. As institutional investors pull away capital, ETH will be fragile. Most outflows are from Grayscale’s ETHE.
- The sideways chop and inability of buyers to unwind losses of early August mean Ethereum’s dominance is falling. This contraction has seen Bitcoin increase its market share, according to Glassnode data.
Ethereum Price Analysis
ETH/USD bulls are confident of what lies ahead.
However, prices are flat and uneventful—as seen from the dropping trading volume.
Technically, sellers of August 4 and 5 are in control from a top-down analysis.
If bulls build momentum and break $2,800, this preview may change, paving the way for a leg up to $3,000.
Meanwhile, aggressive sellers can consider shorting any attempt higher, targeting $2,100 in the coming days. The drop will be accelerated if bears push the coin below $2,500 and the current bull flag.
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