Ethereum Down 5%, ETH Bulls Facing Rejection Wreaking Havoc on DeFi Trader

Ethereum might be firm when writing, registering gains over the last week. However, looking at the daily chart, the downtrend remains. If this trend is to change, not only will ETH bulls need to convincingly break and close $2,400 and $2,800, but this leg up must be with a high trading volume. In that event, the second most valuable coin might find the momentum to fly, even rising above $3,500. As it is, sellers have the upper hand (at least from a technical perspective). Fundamentals might help steady bulls, but the coin may slip below crucial support levels if there are losses.

At press time, Ethereum is down 5% on the last day but stable on the previous week. ETH is underperforming, especially versus BTC and other top altcoins, including BNB, engagement is below average, at $14 billion.

Traders are watching the following trending news:

• Ethereum developers, reports indicate, might split the upcoming Pectra upgrade into two parts. If this goes according to plan, the first update will be set for early 2025. The hard fork is set to improve the platform’s efficiency and scalability.
• One DeFi trader is facing it rough due to market volatility. Over the past few months, the trader has racked up more than $43 million in losses. Even so, according to on-chain data, the trader holds over $400 million in crypto.

Ethereum Price Analysis

ETH/USD is down. Technically, the short-term trend favors buyers.

However, for this outlook to be solidified there must be a conclusive close above $2,400.

Ideally, a breach above $2,800 will be a safe entry for cautious but optimistic buyers.

In that event, ETH might fly, even racing to $3,500.

On the other side of the equation, any dip reversing September 13 gains–as is currently the case– pours cold water on the current momentum.

Then, Ethereum might slide back to $2,100 and later $1,500 in a bear trend continuation formation.