Ethereum’s price is currently hovering around a critical support level, with traders suggesting that a dip below $2,800 could lead to a significant market shift. As of now, Ethereum (ETH) is trading at $2,885, having dropped 11.09% since July 28, according to CoinMarketCap data. This decline has sparked concerns about a potential further drop, which could impact the broader cryptocurrency market, including Bitcoin.
Traders Eye Key Levels for Ethereum and Bitcoin
Renowned crypto analyst Michael van de Poppe highlighted the precarious situation for Ethereum. He noted that if Ethereum fails to hold its current support level, Bitcoin might also test the $60,000 mark, increasing the likelihood of a deeper correction for both assets. Van de Poppe emphasized the critical nature of this juncture, suggesting that a failure to maintain support could lead to a drop below $2,800 for Ethereum.
Other traders echoed this sentiment. Crypto Wealth, a pseudonymous trader, indicated that the next significant support level for Ethereum might be around $2,700. Another trader, Poseidon, mentioned that Ethereum could test the weekly demand zone between $2,500 and $2,700 before any potential recovery.
Potential Implications and Market Reactions
If Ethereum’s price dips to $2,800, it could result in liquidations amounting to approximately $259.46 million in long positions, as per data from CoinGlass. However, van de Poppe also noted the possibility of a near-term rebound, stating, “If that doesn’t happen and we rotate back up from here, it’s party time.”
The recent fluctuations in Ethereum’s price come amidst a backdrop of mixed performance for spot Ethereum ETFs. From July 29 to August 2, these ETFs experienced net outflows totaling $169.4 million, according to Farside data. Despite this, Katalin Tischhauser, head of investment research at Sygnum Bank, expressed optimism. She predicted that spot Ethereum ETFs could potentially amass up to $10 billion in assets under management within their first year of trading.
