Ethereum Drops Below $2,800 Support as Market Faces New Challenges

Ethereum has recently fallen below its $2,800 support level, leading many traders and analysts to reassess the outlook for the cryptocurrency. As the price of Ethereum struggles to maintain momentum, the market faces several challenges that could impact its short-term performance.

The cryptoccurency is currently trading at $2,731.05, as traders are on high alert for any further drops or potential reversals. With the Cryptocurrency down 6.87% in the past 24 hours, the pressure on the cryptocurrency market is growing.

Ethereum Faces Strong Resistance Below $2,800

The tokens price dropping below the $2,800 support level has raised concerns among traders. According to TedPillows, the next major support zone for the token is between $2,500 and $2,600. This level is crucial for any potential bounce in the price. The analyst noted, “ETFs and DATs have accumulated in this zone”. He believes this could hold in the short term as the market waits for signs of recovery.

The drop in price follows a notable outflow of $155.7 million from Ethereum ETFs, with BlackRock contributing $54.9 million in sales. This suggests that large institutional players are also adjusting their positions in response to current market conditions.

Traders are closely watching for any reversal or stabilization at the $2,500-$2,600 support area.

Shorts and Longs at Risk if Ethereum Moves Sharply

Another key concern for traders is the current position of both long and short contracts in Ethereum. According to recent reports, around $11.22 billion in short positions could be liquidated if the token experiences a 30% pump.

Conversely, if the price of the asset falls by 30%, approximately $10.5 billion in long positions could be liquidated. These large positions show how volatile the market has become, with traders facing potential risks in either direction.

Ethereum‘s price volatility is contributing to a sense of uncertainty in the market. As traders wait for a clear direction, the risk of significant liquidations remains high. This can lead to sharp price movements in the short term, making it difficult to predict where the coin’s price will go next.