Ethereum Collapsing Versus Bitcoin: Is This The Start Of A Dump Below $2,100?

Ethereum fell yesterday, extending losses and, once more, marking $2,400 as a crucial resistance level. For the uptrend to take shape, ETH bulls must float above this zone, ideally above $2,800, at the back of rising trading volume. Before then, sellers remain in control. With every rejection of higher prices, there is a high probability of ETH sliding below August lows. If this happens, and the sell-off is with expanding volume, the coin might drop harder, reaching $1,800 in a bear trend continuation formation.

Sellers have the upper hand, and this shows in the daily chart. Trackers also confirm that ETH is down 2% in the past. However, what’s evident is the absence of interest from traders. On the last day, the average trading volume is at around $14 billion.

Despite the discouraging turn of events, Ethereum investors and traders are closely monitoring the following news:

• Ethereum is weak, and continues to discouragingly underperform versus Bitcoin. According to Binance market data, the ETH/BTC rate fell below 0.04 for the first time since April 2021. At this pace, the odds of BTC extending gains, pushing the ratio to 0.0615 recorded in September 2019, remain on the table.
• In a major boost to Ethereum and its layer-2 ecosystem, Sony and Circle, the issuer of USDC, are partnering. By joining hands, the goal is to grow the upcoming Soneium ecosystem.

Ethereum Price Analysis

ETH/USD is steady when writing, though under pressure.

Unless there is a sharp expansion above $2,400, sellers are in control.

For this reason, traders can consider unloading ETH on every attempt higher, targeting $2,100 in the short term.

As mentioned earlier, if sellers press on, the probability of Ethereum losing $2,100 and sinking to as low as $1,800 will be on the table.

If, however, ETH bulls find strength, a close above $2,800 would be the basis of a trend shift.