- Summary:
- Ethereum price has recently fallen below $2,500, landing it at a critical juncture with potential for an upside. What’s next in the cards?
Amid escalating tensions in the Middle East, global financial markets are witnessing a bearish wave, and the cryptocurrency realm has been similarly impacted. The overall crypto market capitalization has plummeted from $2.3 trillion to $2.1 trillion in just a week, indicating a growing bearish sentiment.
At the time of writing, Ethereum price stood at $2,455, showing a slight recovery of 0.3% from a significant drop of -5.9% experienced on Monday. Just ten days ago, Ethereum successfully reclaimed the $2,500 mark, having traded below this key resistance for nearly a month. Falling below this support could extend bearish sentiments further.
Additionally, the increasing fear among investors has led to net outflows in Ethereum ETFs. Coinglass data reports that Ethereum spot ETFs faced outflows totaling $48 million on October 1, with an average price of $2,601 per token. Should Ethereum’s value continue to drop below the psychological $2,500 level, further declines could ensue.
Currently, Ethereum is trading below critical 20, 50, 100, and 200 Exponential Moving Averages (EMAs), signaling a bearish trend. Moving forward, Ethereum’s rebound will depend on broader market sentiment and its ability to hold above the crucial $2,400 support level. On a positive note, the current price offers an attractive entry point for new buyers, given it is situated at a significant inflection point, making the risk-reward ratio appealing.
Current Ethereum Price Analysis
The ETHUSD pivot stands at $2,460, with the MACD indicator currently favouring sellers. Immediate support appears at $2,442, but more aggressive downward action could challenge the $2,425 level. If the price exceeds $2,460, buyers may seize control, testing the first barrier at $2,480. Surpassing this could establish $2,480 as new support, invalidating downward pressures, and setting the stage to test $2,500.
Ethereum Price Forecast
The road ahead for Ethereum remains uncertain. Traders should keep an eye on the broader market trends and significant support levels. A sustained move above $2,460 could bring the key $2,500 level back into play, sparking potential bullish momentum. Conversely, failure to hold critical supports may result in further declines.
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