The crypto markets are heading towards the end of the monthly trade and hence the market participants may expect a healthy consolidated close. Meanwhile, the crypto winters are approaching and as per the historical pattern, September is expected to squeeze out the majority of the gains. Therefore, before triggering a huge price action to $3000, a plunge to $2000 appears to be on the horizon for the Ethereum (ETH) price rally.
Ever since the launch of the spot Ethereum ETF, the net flows have not recorded any attractive numbers. Meanwhile, spot BTC ETF outflows came to an end as the inflows marked new highs, not seen in the past 30 days. Although the spot ETF failed to attract the institutions, the retail traders appear to be bullish on Ethereum. The ETH open interest has largely been eliminated as the funding is becoming negative as the buyers appear to have stepped in at the lows, which suggests an ideal reversal zone.
Does this suggest that the ETH price is preparing for a rebound? Is it time for reversal?
The price of Ethereum broke below the support at $2500, which revived the possibility of a restest of the next support at $2200. Therefore, a structural higher low is going to form in a deep value zone following a breakdown from the rising wedge. The bulls have halted the bearish trend with a reversal above $2500 while the next price action remains uncertain. If the bulls maintain a healthy upswing, a rise above $2700 may elevate the levels to $3000. As the crypto winters are about to begin, the bullish probability remains within a limited range.
Therefore, if the price loses the current support zone between $2350 and $2416, then a drop close to $2000 could be imminent. This move may attract the required liquidity, which may revive a strong ascending trend.
The ETH price is still trading above the EMA 50 support level in the longer time frame and hence there could be a possibility of a price capitulation. Therefore, the sluggish phase is expected to go on where the price may continue its trade within a narrow range. Hence, the Ethereum (ETH) price is believed to maintain a range-bound trade for a few more weeks, which may result in a bullish breakout beyond $3000.
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