Current trend

The ETH/USD pair consolidates around 2348.40 during the Asian session. The second-largest cryptocurrency by market cap has continued its downward movement since the Ethereum-ETF began trading in July, having already lost more than 31.0% in value.

Some analysts believe that the ETH economic dynamics have changed since the March launch of the Dencun upgrade, which aimed to scale by creating a new type of transaction for large amounts of binary data. The hard fork significantly reduced fees in second-level networks such as Optimism, Arbitrum, Base, zkSync, which in turn negatively affected the income of validators and operators in L2 solutions.

In turn, the US employment data showed the creation of 142.0 thousand new jobs outside the agricultural sector, below expectations of 160.0 thousand, but the greatest effect was caused by the revision of the July figure from 114.0 thousand to 89.0 thousand, which acted as a catalyst for the downward dynamics of cryptocurrencies. A similar trend is seen in Ethereum-ETFs, from which market participants withdrew 5.2 million dollars the day before, according to Farside Investors.

Meanwhile, US investment management company VanEck has announced the liquidation of its Ethereum Futures-ETF (EFUT), which has 52.15 million dollars in assets under management, citing a lack of demand for the investment product as well as issues with its performance and liquidity. The management has already informed clients that trading will be halted on September 16 and the fund's assets will be liquidated and returned to investors on September 23. While the press release cited several potential reasons for the decision, members of the crypto community noted that it could be due to the fact that VanEck has already launched a spot Ethereum-ETF. The company also indicated that the final tax status of distributions made by the fund, including liquidation distributions, will be provided to shareholders along with the fund's tax reporting at the end of the year.

Support and resistance

A global correction is forming on the daily chart, and the price is still falling within the descending corridor with dynamic boundaries of 2430.00–1770.00.

Technical indicators confirm the current downward scenario, actively strengthening the sell signal. The EMA fluctuation range on the Alligator indicator is expanding in the downward direction, and the fast EMAs are moving away from the signal line, while the AO histogram has long since moved into the sales zone, where it is forming new downward bars.

Resistance levels: 2434.00, 2810.00.

Support levels: 2162.00, 1770.00.

Trading tips

If the asset continues declining and the price consolidates below 2162.00, short positions can be opened with the target at 1770.00. Stop-loss — 2300.00. Implementation time: 7 days and more.

If the asset reverses and grows and the price consolidates above the resistance level of 2434.00, long positions will be relevant with target at 2810.00. Stop-loss — 2300.00.