Ethereum is Closer to $2,200 Than You Think. Here’s Why

Ethereum slipped below $2,400 a few minutes ago, continuing its descent from the previous day’s. Nonetheless, it saw slight upside movement that saw it edge close to the $2,450 mark. 

The asset experienced one of its biggest declines on Friday, retracing from $2,569 to a low of $2,367. The altcoin ended the session with losses exceeding 4% amid several attempts at buyback. 

Ethereum is repeating the same trend as the previous day: seeing a small uptrend but experiencing a trend reversal afterward. It trades slightly lower than its opening price and shows no signs of halting its downtrend. It loses its appeal, resulting in less interaction from traders.

The coin is experiencing a decline of more than 35% in trading volume at the time of writing. The bulls may be exhausted as the recent price trend indicates a spike in selling pressure. This is the same reading on the 2-hour chart, which shows the relative strength index dipping in response to an increase in selling volume. 

Data from Lookonchain supports this claim, as it reveals that a dormant Ethereum whale recently sold its bag containing 5,000 ETH. The new trend of dormant whales selling off some of their holdings is gaining more traction, as the platform indicated that another sale occurred a few days ago. 

Blackrock joined the frenzy as it sold over 19 ETH on Friday. It is worth noting that the firm had not sold any ETH prior to this in June and still holds over $4 billion in the coin, adding $750 million to its bag in the sixth month of the year. 

However, consistent selling is affecting both price and investors’ psychology, as more selling may occur as news of the dormant wallets’ activity spreads.

Ethereum is Closer to $2,200

A trader on X noted that the apex altcoin is at a crossroads. He presented a chart and noted the asset may slip below $2,200 in the coming days. He added that the possibility of a surge to $2,800 in the coming days exists. 

The present data support the speculation of further price declines. The increasing selling pressure and dwindling bullish rhetorics across the market are the biggest factors for a slip to levels not seen in months.  

The 1-day chart reveals that the rebound may be far off if Ethereum breaks out of its Bollinger bands. ETH broke below the metric on Friday but rebounded. The indicator is expanding as volatility increases. However, it stretches more downward, indicating an impending breakout. 

Other indicators, such as the moving average convergence divergence and the average directional index, support speculation of further downside movements. MACD has continued printing sell signals since the bearish divergence a few days ago. ADX continues to decline, indicating bearish dominance.

On the other hand, a shift in fundamentals may see the largest altcoin surge. It will reclaim lost levels, retesting $2,800. Flipping this level may guarantee an attempt at $3k. 

Other traders on X share the same sentiment, noting that the altseason may be at hand as Bitcoin continues seeing less liquidity inflow. 

Nonetheless, other assets in the Ethereum ecosystems are seeing notable declines at the time of writing. ETC dropped from $1.1 to a low of $15.6 a few minutes ago. It is yet to recover fully, and selling pressure remains the same. 

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