The recent surge in Ethereum price above $2,500 suggests a revival of a strong upswing and expectations to reach $3,000. Moreover, the growing market sentiments favored a significant increase. However, the possibility of a consistent increase remains questionable at the moment as the second-largest token, Ethereum, is losing its grip on the rally. Bulls are trying with all their might to maintain the momentum, but a slight dip in their strength could lead to a huge pullback.
Will Ethereum price fall below $2,000 again?
ETH’s spot ETF does not seem to have had much of an impact on the rally as it appears to be struggling. Since its launch, the ETFs have seen negative net total inflows, which may be primarily due to the Grayscale Ethereum Trust losing money. Therefore, this also suggests that the money may be flowing out of Ethereum into the other altcoins. ETH price has entered a critical situation as after a 50% drop since the March highs, another 40% drop seems to be imminent.
ETH price has been trading inside an ascending triangle and is about to break the lower support as the bulls seem to have turned weak. The RSI failed to rise above the ascending trend line as it faced rejection on every attempt. Therefore, a rise above the crucial resistance at $2682 could invalidate the bearish trend; otherwise, a drop below $2300 could be imminent.
However, there are some positive developments in the markets as the falling ETH prices could allow many new entrants to enter the market. Once the bottom is reached, a very strong bullish opportunity can emerge. When Bitcoin trades sideways, the other altcoins grow, but if the ETH price falls, it could go unnoticed. Therefore, Ethereum price, trading in a critical position holding the crucial support, is expected to rise again above $2,800 and reach $3,000.
