- Summary:
- Ethereum price has just broken below $2,500 but is at an inflection point with a potential for an upside break. Which way will it swing?
Heightened war tensions in the Middle East has injected a bearish contagion in global financial markets, and the cryptocurrency market has not escaped. The crypto market capitalisation has dropped from $2.3 trillion to $2.1 trillion in under a week, signifying a strengthening bearish hold.
Ethereum price was at $2,455 at press time, having inched up by 0.3 percent to recover part of the -5.9 percent decline registered on Monday. ETH only returned above the $2,500 resistance mark ten days ago after trading below that mark for almost a month. A breach of that support could create a psychological barrier that could extend the bearish sentiment.
With the fear sentiment setting in, Ethereum ETFs have also experienced a decline. As per Coinglass data, Ethereum spot ETFs had net outflows worth $48 million on October 1, at an average price of $2,601 per coin. However, a break below the $2,500 psychological mark could lead to more declines.
Furthermore, at its current level, Ethereum price is below the 20,50,100 and 200 Exponential Moving Average (EMA) levels, pointing to a bearish undercurrent. Moving ahead, Ethereum’s recovery will depend on the market-wide sentiment and its ability to hold above the $2,400 support. That said, the current price also offers a good entry point for buyers, as it is positioned near an inflection point with a good risk-reward ratio.
Ethereum price today
ETHUSD price pivots at 2,460, and the MACD indicator signals that the sellers are in control. With the sellers in control, the immediate support will likely be at 2,442. However, a stronger downward momentum could breach that mark and clear the path to test 2,425.
Alternatively, moving above 2,460 will favour the buyers, with the first barrier at 2,480. If the momentum manages to break above that mark, it could establish that mark as the new support and invalidate the downside narrative. Meanwhile, that could establish a pathway to test 2,500.
