Cryptocurrency traders believe that Ether’s next move is crucial not only for its own price but also for Bitcoin. Ether is currently holding onto a critical support level and is at a tipping point.
If it fails to maintain this support, it could lead to a decline below $2,800, which could have broader implications for the cryptocurrency market, including Bitcoin.
Ethereum’s Support Level and Potential Impact on Bitcoin
“Ethereum is holding onto the crucial area of support,” MN Trading founder Michael van de Poppe wrote in an August 3 X post. He explained that if Ethereum fails to maintain this support level, it could lead to a decline to around $2,915, which represents a further drop of about 4%. This drop could also push Bitcoin, currently trading at $60,717, further into an uncertain range for traders.
Van de Poppe warned that if Ethereum loses this support, Bitcoin might test $60K, while Ethereum could drop below $2,800 as part of a significant correction. Other traders also suggest that Ethereum’s price might fall below $2,800 before any potential recovery begins.
Michael van de Poppe points to a possible further decline in Ether’s price. Source: Michael van de Poppe
Pseudonymous crypto trader Crypto Wealth noted, “The only other level which seems price could go before a full-blown reversal would be around $2,700.” Similarly, trader Poseidon added, “At this point, the price should sweep the $2,800 lows and test the weekly demand, $2,500-$2,700.”
Ethereum’s Current Price and Market Impact
Ether is currently trading at $2,885, down 11.09% since July 28, according to CoinMarketCap. A further decline to $2,800 could lead to a significant impact, wiping out $259.46 million in long positions, as noted by CoinGlass data.
Ether’s price is down 11.09% since July 28. Source: CoinMarketCap
Despite the current volatility, MN Trading founder Michael van de Poppe pointed out the potential for a rebound. “If that doesn’t happen and we rotate back up from here, it’s party time,” he stated, suggesting optimism for a possible recovery.
This analysis comes amid a week of fluctuating spot Ethereum ETFs, with inflows and outflows alternating. The net outflows from July 29 to August 2 amounted to $169.4 million, according to Farside data.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
