The recent price action of Ethereum has seen a 20% pullback in the past few weeks, with the bulls struggling to maintain levels above $2,700. While there has been a rebound from the lower support zone, the bearish sentiment continues to loom over the token. Analysts predict another 7% to 8% pullback, potentially leading to a 35% upswing if the trade scenario unfolds as expected.
Despite the price fluctuations, Ethereum ETFs have seen limited interest from institutional investors, with only $580 million in inflows since their launch. However, there has been some positive movement on the platform, with inflows picking up and outflows on Grayscale’s trust stabilizing, offering a glimmer of hope for bullish sentiment in the crypto market.
In a concerning development, the WazirX hacker has transferred over 4.6K ETH to Tornado Cash, slowly cashing out their ill-gotten gains. This has raised concerns within the market, adding to the overall volatility. Additionally, the upcoming expiration of nearly $1.6 billion worth of BTC & ETH options is expected to trigger significant market movements in the near future.
Looking ahead, the key question remains whether Ethereum will be able to make a sustained upward move and breach the crucial resistance level above $2,500. The daily chart of ETH price indicates a potential drop to the lower Bollinger bands, with the trade sentiment favoring bearish movement. The breakout from the rising wedge pattern was expected to find support, but market instability has hindered a strong rebound. Furthermore, the RSI indicator suggests a lack of momentum, further supporting the bearish outlook.
As a result, Ethereum price is likely to face a support loss, potentially dropping to $2,145 before a significant uptrend beyond $2,500 in the early days of Q4 2024. Traders and investors should stay vigilant as market conditions evolve and monitor key levels for potential trading opportunities.
