Why Is Ethereum (ETH) Down Today?

Crypto Market Crash Causes Ethereum (ETH) Price Decline

The crypto market crash today has led to a 3.59% reduction in its global valuation. This decline followed a correction in the U.S. stock market, with Nvidia wiping out $279 billion from its portfolio.

In the wake of this market correction, Bitcoin’s price fell below $58,000, reaching a low of $55,673.16. Similarly, Ethereum, the leading altcoin, saw its price drop below the $2.4K level.

Ethereum (ETH) Price Outlook for September

Considering the historical market patterns, the question arises: Will ETH coin price continue to decline this September, or will it make a bullish comeback and reclaim the $3K mark?

ETH Crypto Struggles with Resistance

The Ethereum token has struggled to break through its crucial resistance trendline within the descending channel pattern. This struggle has resulted in a 6.18% loss in its portfolio over the past 48 hours. With a 24-hour trading volume of $15.8 billion, Ethereum has recorded a low of $2,313.27.

• The EMA 50/200-day indicators show a consistent decline in the 1D time frame, highlighting increased selling pressure.
• The Relative Strength Index (RSI) has failed to break out of its average trendline, resulting in a sharp drop in the Ethereum price chart.
• Currently hovering below its neutral point, the RSI suggests weak bullish sentiment in the market.

Ethereum Spot ETF Faces Challenges

The Ethereum ETF has started September on a bearish note, recording its first negative day. On the 3rd, the ETFs experienced a negative total flow, breaking a streak of 2 neutral flow days. Fidelity’s “FETH” was the only ETF to record a positive flow with $4.9 million.

• 7 out of 9 ETFs recorded a neutral flow, while Grayscale’s “ETHE” lost $52.3 million.
• The total flow for the day concluded at -$47.4 million.
• Out of the last 13 trading days, the Ethereum ETF recorded a negative flow for 11 days (84.42%), a positive flow for only one day (7.79%), and a neutral flow for one day (7.79%).

Given the rising bearish sentiment for Ethereum ETFs, the price of ETH might face further declines.

What’s Next for Ethereum (ETH) Price?

If a bullish reversal occurs, Ethereum could push towards its resistance level of $2,530. Should the market sustain this level, ETH might surge toward its important resistance level of $2,800 in the upcoming weeks.

Conversely, increasing bearish influence could pull ETH price down to its crucial support level of $2,175 in the near future.