Ethereum Drops As August Bears Press On: Time To Fade Aggressive Sellers?

Ethereum is falling, looking at the formation in the daily chart. In three days, the second most valuable coin lost nearly 10. The confirmation of the double bar bear formation of October 20 and 21 means that sellers are in control. So far, the immediate support is at $2,300, but for this to be valid, buyers must contain these unyielding sellers. Before then, risk-off traders can wait on the sidelines for either bear trend continuation or a welcomed reversal above $2,800 and even July high.

The series of lower lows of the past day has seen Ethereum lose double digits in three days. On the last day alone, ETH is down a discouraging 3%, compounding the misery of holders. Interestingly, the sell-off is with light engagement, standing at around $19 billion in the past 24 hours.

Traders are keeping track of the following trending Ethereum news events:

• Even with the proliferation of Ethereum layer-2s and dropping mainnet gas fees, analysts believe ETH has a bright future. In the scramble for decentralization, Arbitrum, Scroll, and other popular rollups will have to buy decentralization from mainnet validators, lifting revenue and, thus, prices.
• Uniswap has launched a permissionless cross-chain bridging that supports, among other things, Ethereum and most of its layer-2s. The DEX is one of the largest generators of fees and, by extension, pulls ETH demand.

Ethereum Price Analysis

ETH/USD is under pressure when writing.

There is hope that buyers will flow back and contain losses, especially after the close of the October 23 bar with a long lower wick.

Bullish as this is, Ethereum is bearish from a top-down preview.

For now, bulls must defend $2,300 to keep hope alive.

If broken, sellers may force ETH to $2,100 in a bear trend continuation pattern aligning with early August losses.

This preview will only be invalidated when there is a decisive close above August 5 highs at around $2,800.