[Is Ethereum at risk of a $2,500 reversal? 】
Ethereum (ETH) was in mixed territory at the beginning of August, but prices rose by 30% between August 5th and 14th as Grayscale launched a new cryptocurrency trust. However, with the release of U.S. Consumer Price Index (CPI) data on August 14, market sentiment reversed and investors focused on the stock market, causing the ETH price to drop 6% in 24 hours, erasing most of the gains.
The derivatives financial product market showed increased bearish sentiment, with Ethereum's bid-ask ratio falling from 1.07 on August 8 to 0.94 on August 14, indicating that sell orders exceeded buy orders and the market was bearish. Technical indicators show that ETH is encountering strong resistance near $2,770 and could drop to $2,500.
In conclusion, Ethereum’s recent rally has lost momentum, and if bears continue to take control of the market, the price may further pull back to $2,500.
