Ethereum In A Boring Range: Will China Push ETH Below $2,000?
Ethereum continues to chop horizontally, denting bulls’ sentiment. As ETH is below $2,800 but encouragingly above $2,300, risk-off traders can wait on the sidelines. The coin is bearish and inside a descending channel, observed from higher timeframes.
In the short term, the reaction between $2,300 and $2,800 will shape the upcoming trajectory. After the retracement from $4,100, ETH may edge higher, closing above the local resistance, especially if buyers are committed. If not, and the crypto market dumps, Ethereum will sink to below August lows.
Traders are upbeat, but there is nothing to show in the daily and weekly charts. Prices have been consolidating for weeks now. The coin is flat in the past day and week while the average volume in the previous trading day is low, at just $15 billion.
The following trending Ethereum news events could impact prices:
- Ethereum is hanging on a thin thread, and the oversupply from authorities could press the coin lower. Yesterday, the Chinese government sent 7,000 ETH to exchanges. They still control over 542,000 ETH.
- The net inflow to spot Ethereum ETFs as of October 9 is zero. This is only the third time investors in the United States didn’t get ETH exposure since the product launched. Amid this, value continues to flow from Grayscale’s ETHE.
Ethereum Price Analysis
ETH/USD is uneventful when looking at price action in the daily chart.
Technically, there is nothing to look forward to unless there are sharp movements in either direction.
As prices consolidate, sellers have the upper hand as long as prices are below $2,800.
The local support is at $2,300.
If bulls break above the liquidation line (highly unlikely for now), ETH may soar to $3,000.
On the other hand, the probability of Ethereum sinking below $2,300 is elevated.
Should sellers take over; the coin can easily melt below August lows.
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