Ether Bears Take Control With Drop To $2K: What Will Stop ETH’s Price Crash?
Ether (ETH) has fallen sharply after holding It was rejected at $2,400 Last week on Monday, it fell to $ 2,100, which indicates that the bears have returned to “control”, according to the new analysis.
Main Receptors:
Ether is down 12% after being rejected at $2,400 as the bears regain control. Binance selling pressure and ETF flows indicate weak ETH demand. Analysts warn that if the $2,000 support is broken, ETH/USD may fall to $1,700.
ETH bears sell strongly
Data from TradingView showed the price of ETH trading at $2,100, down 12% from a local high of $2,420 on May 6. On Sunday, ETH/USD hit $2,090 on Bitstamp, the lowest level since April 17.
ETH/USD hourly chart. Source: Cointelegraph/Trading view
The feeling of depression may be returning to the Ether market as a key indicator from Binance, the largest crypto exchange by trade, showing that sellers have started to control the volumes of the platform.
Related: Rising oil prices are driving Ether's selling pressure: Tom Lee
Binance taker volume, which measures the total dollar amount of aggressive sell orders placed by traders on Binance Futures, rose to more than $1.1 billion in one hour on Sunday as ETH moved back below $2,100.
When this measure increases during bearish periods, it often indicates forced risk aversion from active market participants or strong short-term depression.
A strong sell-off has been seen on Binance as Ether tests important lows, CryptoQuant analyst Amr Taha said. he said. In a QuickTake note on Monday, he added:
This does not necessarily prove that a deep decline has begun, but it does indicate that sellers were clearly in control during the move.
ETH receiver sells volume on Binance. Source: CryptoQuant
The increase in outflows from ETH investment products added to the sell-side pressure.
According to data from SoSoValue, US-based spot Ethereum ETFs had net inflows for five consecutive days, totaling $255 million.
This suggests that analyst WellFactor has “reached a wall in terms of institutional momentum for Ethereum.” he said. In the Sunday Post, adding
“This heavy sell-side spread is currently keeping a tight lid on prices.”
Spot ETH ETF Flowchart. Source: SoSoValue
Global Ethereum investment products saw $249 million worth of spending in the week ending May 15, the largest since Jan. 30, according to data from CoinShares. It shows.
A 3.5 million ETH cluster could cut a $2,000 sale discount.
Like ether Cost-based distribution dataInvestors hold approximately 3.85 million ETH at an average price of $2,000-$2,100, which creates a support zone. This focus suggests that many investors may add to their positions even during the break, which could dampen another ETH price drop.
Ethereum cost base distribution chart. Source: Glassnode
According to Cointelegraph reportedETH price may drop to $1,700 after confirming daily time frame rising wedge pattern. Traders, however, say that the bearish momentum may stop if ETH/USD holds above $2,000.
“$ETH drops below $2,100 after failing to hold the $2,150 support zone.” he said. Crypto analyst Ted Tras on Tuesday's X post
“The next key support for Ethereum is the $2,050-$2,070 level, which could provide some recovery.”
ETH/USD Daily Chart. Source: X/Ted Pillows
Technical analyst Donald Dean he said. ETH bulls need to defend the “lower shelf support near $2,100” to avoid a move below the rising channel on the daily chart.
ETH/USD Daily Chart. Source: X/Donald Dean
Associate Analyst Cryptorphic he said. “If the ETH/USD pair fails to hold this area and consolidates below it, we can continue to lower support levels,” adding:
“A recent break below the local support area indicates that buyers are weakening in the short term.”
Meanwhile, Sharplink CEO They pointed out Three drivers driving the ETH price higher include the passage of the CLARITY Act in the US, a return of market-wide appetite, and Real-world asset token development on Ethereum.
