Ethereum price clings ‘crucial area,’ drop below $2.8K looming

Ether is holding tight to a critical support level and is at a tipping point that could lead to a decline below $2,800 if it fails to hold, according to crypto traders.

“Ethereum is holding onto the crucial area of support,” MN Trading founder Michael van de Poppe wrote in an Aug. 3 X post. Van de Poppe further explained that if it fails to maintain the level, it may impact Ether around a further 4% and push Bitcoin, which is trading at $60,717, further down into an uncertain range for traders.

“If this is lost, Bitcoin is likely going to test $60K and Ethereum will test <$2,800 as the final big correction,” Van de Poppe claimed.

*Michael van de Poppe points to a possible further decline in Ether’s price. Source: Michael van de Poppe*

Other traders also suggested that Ether’s price might drop below $2,800 before any recovery begins.

“The only other level which seems price could go before a full blown reversal would be around $2.7k,” pseudonymous crypto trader Crypto Wealth wrote.

“At this point, the price should sweep the 2800 lows and test the weekly demand, $2500-$2700,” pseudonymous crypto trader Poseidon added.

Ether is currently trading at $2,885 at the time of publication, down 11.09% since July 28, according to CoinMarketCap data.

*Ether’s price is down 11.09% since July 28. Source: CoinMarketCap*

A slight decline to $2,800 will wipe out $259.46 million in long positions, according to CoinGlass data.

Given Ether’s current volatile range, van de Poppe pointed out that there’s also potential for a rebound in the near term.

“If that doesn’t happen and we rotate back up from here, it’s party time,” he stated.

This comes after a week of spot Ethereum ETFs oscillating between inflows and outflows. The overall net amount from July 29 to Aug. 2 was outflows totaling $169.4 million, according to Farside Investors data.

On Aug. 1, Katalin Tischhauser, head of investment research at Sygnum Bank, told that spot Ether exchange-traded funds could amass as much as $10 billion in assets under management within their first year of trading.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.