Ethereum Price Prediction: 3 Key Levels as BTCS Sells ETH to Defend Its Aave Loan

Three Things to Know

• BTCS sold ether at a loss to keep its Aave loan safe from liquidation.
• Daily momentum has sunk into oversold territory, yet sellers still lead the trend.
• A nearby floor near $1,850 may decide whether forced selling spreads.

BTCS, an Ethereum treasury firm, sold part of its ether to protect a loan on Aave and keep the position clear of automatic liquidation.

The sale lands as ether grinds lower for a fourth straight week. Other firms that borrow against their ETH face the same math if prices keep falling. Traders now want to know if buyers can hold the line before more defensive selling hits the market.

BTCS Trims Its Ether Stack to Keep a $64 Million Loan Afloat

The company sold the ether at a loss to keep its $64 million loan on Aave, the decentralized lending protocol, in good health.

The move shows the risk built into borrowing against a crypto treasury. Firms like BTCS pledge ETH as collateral to raise cash. When ether falls, that collateral loses value and the loan looks riskier.

Aave tracks each position with a health factor. If it drops too far, the protocol can sell the collateral automatically. To avoid that, a borrower must add assets, repay debt or sell some holdings at market prices.

BTCS chose to sell. That kind of defensive selling adds fresh supply just as buyers are already scarce. No sale price or date was disclosed.

Ether Slides Under Both Long Averages After a 22% Monthly Drop

Ethereum (ETH) daily price with the nearest support (green) and resistance (red). Source: TradingView

Ether traded near $1,940 at last check, down about 4% over the past day. That puts the coin well beneath both of its long-term moving averages. A moving average smooths out daily swings to show the underlying trend over a set period.

The 50-day average sits near $2,320, with the 200-day average close by. When price trades below both lines and the two sit almost on top of each other, traders read it as a bearish structure. Short-term and long-term trends now point the same way, and that way is down.

Ether shed roughly 13% in the past week. The monthly drop stretches to about 22%.

A single bad headline tends to cause one sharp drop and then a pause. Here the selling has been steady, day after day and week after week. Holders like BTCS trimming positions to protect loans fit that slow, grinding picture.

Both lines now act as a ceiling above the market. Any bounce would likely meet sellers as it approaches that zone.

For bulls, the task is clear. They would need to push ether back above the cluster in the low $2,300s to repair the trend. Until that happens, rallies look more like relief moves inside a downtrend.

Sellers Stay in Control Even as Ether Hits Oversold

RSI, a 0 to 100 gauge of momentum, sits near 25. Readings under 30 count as oversold. That means sellers have pushed price down faster than usual, and the move may be stretched.

Oversold readings often come before a bounce. They do not mark a bottom on their own, though. In a strong downtrend, RSI can stay low for days while price keeps sliding.

Other signals point the same way. The MACD, a tool that compares short and long trends, remains below its signal line. In plain terms, momentum is still pointing down. Trend strength readings also show a real trend, and sellers are the ones leading it.

That mix leaves room for a relief bounce, since forced sellers like BTCS eventually run out of stock to dump. Traders will want proof first. A clean MACD cross back above its signal line would be the first sign that buyers are taking over.

$1,850 Is the Floor Standing Between Ether and Open Air

Support sits near $1,850, the only floor the data maps below current prices. Ether trades less than 5% above it, so the level could come into play quickly.

If that floor gives way, no clear support appears underneath. A drop of that kind would also squeeze borrowers who pledged ETH as collateral. Firms in the same spot as BTCS might have to sell again, adding supply on the way down.

On the upside, first resistance stands around $2,280. That level sits just under the two long averages discussed above. A daily close above it would put ether back into that cluster and start to repair the broken trend.

Clearing the cluster still leaves one more test. The next resistance waits near $2,400. A move through that mark would show buyers have regained control. Traders would then treat the recent slide as a correction inside a larger range.

Where Does Ether Go Over the Next Three Days?

The next three days likely hinge on whether the nearby floor holds.

• Bullish: Buyers defend the support floor and the oversold reading sparks a bounce through first resistance. That would open a run toward the next ceiling and the long averages. A daily close back under the floor would cancel this view.
• Bearish: A clean break below the floor extends the selloff, with no mapped support underneath. Forced selling from leveraged holders could speed the drop. A recovery above first resistance would cancel this view.

Oversold but Not Yet Out of the Woods

The trend stays bearish until price climbs back above its long averages. Any oversold bounce would likely be a pause inside the downtrend.

The bigger risk sits with leveraged treasury firms. If the floor breaks, more of them could follow BTCS and sell to protect their loans.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.