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The Ethereum price underwent a 20% pullback in the past couple of weeks as the bulls failed to hold the levels above $2,700. Although they have confirmed a rebound from the lower support zone, the bearish influence over the token does not appear to have faded yet. Therefore, the second-largest token is expected to face another 7% to 8% pullback, resulting in a 35% upswing if this trade plays out well.
On the other hand, the Ethereum ETFs are struggling with just $580 million in inflows since the launch, suggesting less interest in institutions over the token. However, the platform saw some inflow as the outflow on Grayscale’s trust stagnated, fluttering some bullish hopes over the crypto.
Secondly, the WazirX hacker sent over 4.6K ETH to Tornado Cash, cashing out step by step, raising alarms within markets. On the other hand, the other main reason for a rise in the volatility could be the options, which are set to expire in a short while now. Nearly $1.6 billion worth of BTC & ETH options are set to expire, which may initiate major moves within the markets.
Having said that, will the ETH price manage to make an upward move? Will it reach the crucial resistance above $2,500?
The daily chart of ETH price suggests the token is poised to hit the lower bands of Bollinger as the trade seems to have flipped in bearish favour. After a breakout from the rising wedge, the price was expected to hit the support but the instability within the markets has failed to revive a strong rebound. Moreover, the RSI remains grounded within the lower bands, suggesting a drop in momentum, which validates the bearish claim.
As a result, the Ethereum price is likely to lose support as bearish news circulates across the token. Hence, a pullback to $2145 could be imminent before reviving a strong rise beyond $2500 in the first few days of Q4 2024.