According to crypto investors, Ethereum is clinging tightly to a critical support level, and breaking this support could lead to a drop below $2,800. MN Trading founder Michael van de Poppe wrote in an August 3 X post that Ethereum is holding onto a critical support area. Van de Poppe also explained that failing to maintain this level could affect Ethereum by approximately 4%.
What Is Happening on the Ethereum Front?
The popular figure also explained that Bitcoin, trading at $60,717, could push investors into an even more uncertain range and shared the following statements:
“If this is lost, Bitcoin will likely test $60,000, and Ethereum will test below $2,800 as the last major correction.”
Other investors also suggested that Ethereum’s price could fall below $2,800 before any recovery begins. Crypto investor Crypto Wealth shared the following statements on the subject:
“The only other level the price could go to before a full reversal seems to be around $2,700. At this point, the price should sweep the $2,800 lows and test the weekly demand levels of $2,500-$2,700.”
Ethereum, according to CoinMarketCap data, was trading at $2,885 at the time of writing, down 11.09% since July 28.
Details on the Subject
According to CoinGlass data, a slight drop towards $2,800 in the futures market will eliminate $259.46 million in long positions and trigger a significant liquidation process. Considering Ethereum’s current volatility range, van de Poppe indicated a potential for recovery in the near term:
“If this doesn’t happen and we turn up from here, it’s party time.”
This period came after a week of spot Ethereum ETF funds fluctuating between inflows and outflows. According to Farside data, a total net outflow of $169.4 million occurred from July 29 to August 2. On August 1, Katalin Tischhauser, head of investment research at Sygnum Bank, stated that spot Ethereum exchange-traded funds could accumulate up to $10 billion in assets under management in their first trading years.
