Ethereum showed a significant rise of 6% in the last 24 hours, but soon it may lose 2%. Currently, ETH is trading at $2,639, struggling to overcome market challenges.
True Follower of Bitcoin
Among crypto enthusiasts, it is well-known that Ethereum, being the second-largest cryptocurrency, follows Bitcoin's pattern. More than 95% of the time, Ethereum mimics Bitcoin's movements, whether rising or falling. The primary reason for this is market sentiment. Bitcoin holds a market dominance of 56.4%, whereas ETH has 14.3%. In any active market, the leading asset dictates the trend for others. If investors lose confidence in Bitcoin, Ethereum's market also declines.
A Zone of Resistance
The area around $2,670 has been a strong resistance level for Ethereum since April 23, 2021, the first time ETH touched this mark. This price zone has always played a role of support or resistance depending on the asset's movement direction. This is a major reason for the current rejection. Crypto assets with strong fundamentals respect their support and resistance zones. In the current trend, if this rejection persists, Ethereum could fall to $2,540.
Ethereum Foundation Sell-Off
The wallet associated with the Ethereum Foundation, funded by Vitalik Buterin, has been actively selling ETH. In September 2024, the foundation sold 1,150 ETH worth $2.80 million. Etherscan data shows that on September 23, the Ethereum Foundation sold 200 Ethereum for 527,989 Dai. Along with these sales, the foundation has been transferring funds to various wallets. Vitalik informed the community that he has not sold any ETH for personal profit, but the foundation provides grants to promising projects.
September has traditionally been a bearish month in the history of crypto markets. Amidst the current market volatility, the community sees both opportunities and risks. A lack of knowledge and techniques indeed causes losses, so traders and investors should act with caution and conduct research. It will be interesting to observe if Ethereum attempts to break the resistance again or waits until October.
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