Ethereum hit another high yesterday but failed to break above $2,700. There is hope among holders that the second-most valuable coin has what it takes to regain the $2,800 level, but bulls have yet to show that. So while we are optimistic, only time will tell. For now, the important level to watch going forward has to be the upper end of this range at $2,800, while the support range is between $2,300 and $2,400. As long as the price remains within this zone, Ethereum could continue to build on its gains from the August lows and shake off any weakness.
Although the overall trend formed by price action for most of Q3 2024 is bearish, ETH bulls are showing strength. The coin has gained nearly 1% in the past day, extending its weekly gain to around 5%. However, as of this writing, engagement has fallen to approximately $21 billion in the past day, which is alarming.
Traders are actively monitoring the following Ethereum news:
Sentiment is balanced and skewed in favor of the Bears, but it’s better than it was a few days ago. According to CMC data, 59% of traders are bearish, while the number of bulls has increased slightly to more than 40%. If the price breaks out of the stubborn range, the resulting FOMO could change the outlook for the coin and support the bulls. In Q3 2024, Reddit sold most of its crypto assets, including BTC and ETH. This stash was used as a financial reserve. In launching its IPO, the social media company said it used excess cash to buy digital assets.
Ethereum price analysis
ETH/USD is solid as I write.
Conservative traders can only wait and see as the coin is still within the $400 range with upper limits at $2,300 and $2,700.
At present, prices have continued to rise to new highs even after the sharp drop in early August. Therefore, a bullish divergence print exists.
Aggressive risk-on traders can take advantage of improving conditions by buying on the dip as long as Ethereum remains above $2,300.
However, above $2,800, there is a clearer entry.
If buyers take over, a breakout could send ETH violently above $3,000.
