Ethereum Dips, Over $44 Million Liquidated: Will ETH Dump Or Break Above $2,700?

Ethereum, following price action across the crypto board, fell yesterday. The result is a three-bar bearish formation, forcing the second most valuable coin far from the key liquidation level at $2,800. With prices closer to $2,500, which is discouragingly near $2,400 and $2,300, bulls need to flow back, propping up the uptrend. If not, confirmation of yesterday’s losses could wreak havoc on determined bulls. In the coming days, traders should closely watch the reaction at the $2,300 and $2,400 support band, and the $2,700 and $2,800 resistance region on the upper hand.

At press time, confidence remains, though the coin is trading within a known bearish range. Technically, prices could rip if bulls push higher, breaking out from the Q3 2024 bearish zone. As it is, Ethereum is down 5% in the past day, unwinding gain over the previous seven days. Amid this contraction, engagement is down, shrinking to around $21 billion in 24 hours.

Traders are monitoring the following Ethereum news events:

• According to trackers, spot Ethereum ETFs in the United States posted inflows of $13 million. Although positive, it is lower than the average of the past few trading days. Grayscale’s ETHE continues to post massive outflows.
• Falling prices, in a bullish backdrop, translate to millions of liquidation. In the past day alone, falling ETH prices saw over $44 million of leveraged positions closed. The majority were longs.

Ethereum Price Analysis

ETH/USD is back to the Q3 2024 range.

There is clear support at $2,300, while liquidation is seen at $2,700.

The 3-bar bearish formation of the past three days forces a reassessment for bulls.

Although there might be opportunities to consider buying the dip, losses below $2,470 or today’s low is a massive dent in confidence.

If prices break above $2,700, reversing October 31 losses, Ethereum might find the wings to fly to $3,000.

Conversely, losses will precede a worrying dump to $2,300—or worse.