Is the ETH Sell-off Over? 3 Reasons Why $2,700 is the Hard Floor

[Alpen]

Ethereum's market cap has lost 10% over two days, accompanied by significant selling volume. While a number of analysts predict further declines for ETH, there are three signs pointing to a near-term reversal for the largest altcoin.

The first sign comes from technical analysis. On the daily chart, you can see the ETH price has simply returned to the lower boundary of its sideways channel. This is a strong support level around $2,700 that could trigger a bounce.



The second sign is on-chain data confirming a support zone at $2,682. This is the average price at which major market players built their ETH positions. Whales have always defended this level by pouring new investment into the market.



The third sign, which confirms the other two, is the persistently negative Exchange Netflow value for Ethereum. Traders continue to withdraw ETH from exchange accounts to their own wallets for holding.

[JeffBrad12]

It marked with gold and other metals dumping and possibly could create rotation from gold to bitcoin and trickle down to ethereum. Maybe the time we've been waiting for has come? a rotation from tradfi to cryptocurrency.

I have gut feeling that this might be a good time to accumulate top cryptocurrencies but the chart is pretty scary. Anyway, we're at pretty low RSI and I personally planning to do DCA again.

[hugeblack]

If this analysis were for Bitcoin, it might be logical, but with the unpredictability of the Bitcoin price, it will be difficult to predict the direction of the Ethereum price.
The Ethereum price trend first requires that there be optimism about the Bitcoin price direction, and then we can see rises, which means that the $100,000 levels for Bitcoin are what may push Ethereum to rise.

BTW, I hope this topic is not SEO SPAM.

[Dunamisx]

We can only exercise more patience about the expectations in ethereum this season, a little more time is require to launch us into the alts season and thereby see it break the resistance affecting from making all time high, if this wasn't its season and then we found out that it couldn't make all time high at the same time, then the indication is pointing towards the possible future expectation during the alts season.

[nelson4lov]

For now, I want to believe there is no hard floor for ETH. If there was, the constant bids from Tom Lee and Bitmine should have formed a hard floor that would act as a rock solid support but that's not the case as we have seen after the sell-offs for the last one week. However, there is currently no major grounds for crypto right now ETH included. Until there's a structural market shift in crypto, we might see sub $2K.

[passwordnow]

Hard floor, resistances, floor price, anything all of that can change in a split seconds move of the market. We have seen that ETH didn't do that much for last year's bull run. But what I believe when all of these precious stones ATHs are done, money will overflow again to the crypto market and it will be with Bitcoin and as well as Eth that shall benefit from it. Right now, the market is hot and had a sudden dip, expect that more panics are going to come even if they're not in losses and some would just choose to sell off as they panic that it's going to go down some more.

[FinneysTrueVision]

This prediction was already looking rather shaky when this thread was created and now that supposed hard floor has fully collapsed. Anybody that borrowed against ETH to go long is forced to sell to unwind their position and avoid liquidation.

Tom Lee must be really nervous since he keeps losing billions worth of investors’ money. Regardless of whether Bitmine starts selling their ETH holdings, it is safe to conclude that the crypto treasury company bubble has now burst. I can only see some rough times ahead for Ethereum, as far as price goes, for the foreseeable future.

[TastyChillySauce00]

Unfortunately everything is dumping right now, not even gold can save you. Ethereum as just an altcoin will be hit harder than bitcoin. At times like this, those three signs you outlined will become useless because market is in the state of irrationality.
Even buying feels like catching falling knives, I think we're on early stage of bearish market but it's too early to make conclusion, one thing you need to know is that, MSTR is on the brink of negative position and they averaged at $76k. It's not looking great.

[pooya87]

When looking at the price of shitcoins in dollars, what most people may not know is that the only reason why it is higher than they deserve is bitcoin! When bitcoin price goes up against dollar for example 20%, all these shitcoins have to do is to not get dumped any more than -20% against bitcoin to have their price go up against dollar.

But this works 2 ways. When bitcoin price comes down, these shitcoin's dollar price also come down. And that's what's happening here for ETH. When bitcoin started its crash, altcoins crashed against dollar too on top of their regular ongoing and slow drop against bitcoin. Therefore you are seeing ETH price currently at $2100 instead of the false "hard floor" thing OP mentioned. And it will continue going lower if bitcoin drops more.

[Alpen]

We can only exercise more patience about the expectations in ethereum this season, a little more time is require to launch us into the alts season and thereby see it break the resistance affecting from making all time high, if this wasn't its season and then we found out that it couldn't make all time high at the same time, then the indication is pointing towards the possible future expectation during the alts season.

I believe in Ethereum, but I’ve lost faith in the idea of a traditional "altseason." It seems crypto investors have become much more selective; they no longer buy altcoins indiscriminately across the board. Honestly, the developers only have themselves to blame for this lack of trust.

The good news is that altseason has become "target-specific." I’ve made a solid profit on Monero, and I’m comfortably in the green on TRX, especially when you factor in the staking rewards.

[Alpen]

For now, I want to believe there is no hard floor for ETH. If there was, the constant bids from Tom Lee and Bitmine should have formed a hard floor that would act as a rock solid support but that's not the case as we have seen after the sell-offs for the last one week. However, there is currently no major grounds for crypto right now ETH included. Until there's a structural market shift in crypto, we might see sub $2K.

I don’t believe $ETH will drop below $2,300. A "structural shift" isn't necessary; a strong technological catalyst is enough. Just yesterday, the developers formed a dedicated team specifically to work on protecting the blockchain against quantum computing. This is exactly the kind of news that should drive ETH’s growth.

[BlackBoss_]

When looking at the price of shitcoins in dollars, what most people may not know is that the only reason why it is higher than they deserve is bitcoin! When bitcoin price goes up against dollar for example 20%, all these shitcoins have to do is to not get dumped any more than -20% against bitcoin to have their price go up against dollar.

But this works 2 ways. When bitcoin price comes down, these shitcoin's dollar price also come down. And that's what's happening here for ETH. When bitcoin started its crash, altcoins crashed against dollar too on top of their regular ongoing and slow drop against bitcoin. Therefore you are seeing ETH price currently at $2100 instead of the false "hard floor" thing OP mentioned. And it will continue going lower if bitcoin drops more.

Altcoins lose more of their prices from all time highs and latest prices before a market crash than Bitcoin. It's how the cryptocurrency market works but it's naturally as it only reflects lower values or zero values of altcoins.

Don't buy altcoins because they are top altcoins. Ethereum as one of strongest altcoins but it is not exception while its loss is still better than shitcoins. In coming bearish months, people will learn this lesson again especially newbies who participated in the market in two latest years with FOMO and high hope of getting rich quickly and easily.

Bearish months will help them self-learning about this market, manipulations and how "potential" Ethereum and other shitcoins are. They only can master this fact by experience bear market and have losses by themselves.

[Taskford]

When looking at the price of shitcoins in dollars, what most people may not know is that the only reason why it is higher than they deserve is bitcoin! When bitcoin price goes up against dollar for example 20%, all these shitcoins have to do is to not get dumped any more than -20% against bitcoin to have their price go up against dollar.

But this works 2 ways. When bitcoin price comes down, these shitcoin's dollar price also come down. And that's what's happening here for ETH. When bitcoin started its crash, altcoins crashed against dollar too on top of their regular ongoing and slow drop against bitcoin. Therefore you are seeing ETH price currently at $2100 instead of the false "hard floor" thing OP mentioned. And it will continue going lower if bitcoin drops more.

Absolutely true, since altcoin usually ride on Bitcoin's momentum, we could see that the value of those shitcoins is not independent on its own, what we usually witness is it reflects on the price on how it hold up against BTC.

If Bitcoin pumps even those total shitcoins or dead ones may look stronger or alive, but when Bitcoin also dumps. The value of those shitcoin dump more harder. This is really the reason why we have seen that ETH on its current figures now and usually we have seen all alts drop if Bitcoin drops. That's why we don't need other altcoins or shitcoins since if we look at the situation happening on the market. Bitcoin is already enough especially if we talk about having an investment with it for long term.

[fikrett]

For now, I want to believe there is no hard floor for ETH. If there was, the constant bids from Tom Lee and Bitmine should have formed a hard floor that would act as a rock solid support but that's not the case as we have seen after the sell-offs for the last one week. However, there is currently no major grounds for crypto right now ETH included. Until there's a structural market shift in crypto, we might see sub $2K.

I don’t believe $ETH will drop below $2,300. A "structural shift" isn't necessary; a strong technological catalyst is enough. Just yesterday, the developers formed a dedicated team specifically to work on protecting the blockchain against quantum computing. This is exactly the kind of news that should drive ETH’s growth.

Or at least instill confidence on paper.

We will see whether these words will be developed further into something interesting.