Ethereum Stakers Lock Over 34 Million Coins: Why Is ETH Losing Steam?

Ethereum is, from a fundamental outlook, bullish. However, looking at price action, there are concerns, especially now that buyers have yet to close above $3,000 and prices consolidating. Technically, the probability of the coin dropping below $2,100 and printing fresh H2 2024 lows cannot be discounted. Sellers are unrelenting; if this happens, ETH may dump hard, flowing to $1,500 or lower. Amid this, outflows from spot Ethereum ETFs remain a concern, heaping more pressure on the second most valuable coin. All this is despite the ongoing network refinement and expansion and plans to cement its position as a leader in DeFi and other sectors.

At press time, traders are upbeat, but there should be more. With the coin moving sideways in the daily chart, the local support and resistance is at $2,300 and $2,800, respectively. Ethereum is flat in the past 24 hours but under pressure in the past week, losing nearly 3%. At the same time, the average trading volume is decent but low, at around $14 billion.

The following Ethereum news events are worth tracking:

• Nearly 30% of all ETH in circulation, or around 34.4 million coins, have been locked by validators. Thus far, there are more than 1 million validators tasked with securing, decentralizing, and processing transactions on the world’s largest smart contract platform.
• Vitalik Buterin, the co-founder of Ethereum, has been liquidating meme coins, sent to him as gifts. Buterin recently liquidated 10 billion MOODENG before donating the proceeds, roughly 260,000 ETH, to charity.

Ethereum Price Analysis

ETH/USD is in a downtrend, looking at the formation in the daily chart.

Even though there is hope that the coin will recover, sellers are in control, at least for now.

Ethereum bulls need to defend $2,300, and if they break $2,800, there might be opportunities for aggressive traders to double down, targeting $3,000 and $3,500.

If not, and there is confirmation of the October 1 bear bar, ETH might easily slide below $2,100 and August lows in a bear trend continuation formation.