As of July 24, Ethereum’s price was $3,640, which represents a 0.7% decrease within the last 24 hours. Since the price was stable, and ETH’s volatility was decreasing, the market sentiment turned cautious after observing that over 640,000 ETH were queued for validator exits.
The ETH price correction threshold for the validator exits is set to $2800, which is a major support level. Selling pressure is likely to increase as traders expect a validator exodus. Ethereum is expected to face a steep decline if the market is bearish for a long time.
Ethereum traders are likely, and some bearish traders are super anxious, as the market tends to sell off below $3500 support price. Ethereum is strong long term, which once again not so encouraging in the short term scenario. Ethereum is likely to drop below unless some buyer momentum comes in to improve the stability band of the price.
Ethereum Price Eyes $2,800 as Crypto Market Tumbles
Ethereum is feeling the brunt of today’s market dip, with the token’s valuation falling from $3681 to $3515, leaving a number of long-position traders with losses. Regardless, ETH’s overarching bullish posture remains intact. Although, a potential dip to $2800 is possible.
The focus on the $2800 mark stems from a preceding head and shoulders pattern which used this value as a resistance. Ever since Ethereum broke above it on 10th July, the token has not head back for a proper retest. Therefore, dropping into this zone could confirm it as a new support.
If the $2800 mark fails to hold, then a strong demand zone around the $2500 and $2600 mark could help alleviate some of the losses. A bounce from this zone could help Ethereum push towards the $6000 target. More importantly, the Chaikin Money Flow (CMF) indicator is still positive which suggests bullish sentiment is still present. Therefore, Ethereum may not head back for retests and continue to push higher.
640,000 ETH Exits Staking as Selloff Concerns Grow
Ethereum’s validator exit queue has spiked to over 640,000 ETH which is the largest withdrawal volume ever recorded in one go. This sudden increase might suggest a greater number of validators are opting to profit, which might increase the selling pressure, ultimately, forcing ETH down to $2800. Still, as noted by Everstake, this also demonstrates Ethereum’s robust decentralization which emphasizes that participants have control over their assets.
Even though the price has dipped, Ethereum’s perspective is still solid. The increase in validator exits is alarming, but in the event that large holders, or institutional investors, step in to absorb the sell pressure, and ETH is able to hold over $2800, this may indicate Ethereum’s renewed strength. This, in turn, may enable Ethereum to run towards the $6000 target mark.
