Ethereum Struggles: Is It Ready To Rise or Fall Below $2,116?

Ethereum has always moved in sync with Bitcoin. It’s like they’re tied together. Since March 2024, the second-largest crypto has been stuck in a downward channel. It tried breaking out a couple of times, but it couldn’t keep up. Rejection from resistance levels knocked it each time.

Right now, Ethereum’s price sits at $2,430, just above the middle of this channel. The situation seems a bit uncertain. Let’s explore what’s happening with Eth and why it’s struggling to rise.

Bearish Signals Everywhere

Eth isn’t showing much strength at the moment. The MACD is at -24.21, and the signal line is crossing above the MACD line. That’s usually a sign of bearish movement. The histogram is also signaling that bearish pressure is growing.

And the RSI? It’s currently sitting at 45.40, which is lower than last week’s 60. This drop shows that Ethereum’s momentum is weakening. On top of that, all the moving averages are suppressing the price, keeping it down. Things got worse on August 27 when ETH experienced a death cross.

Since August 5, Ethereum has been stuck in a tight zone between $2,766 and $2,221, with no clear direction.

Is the Ethereum Foundation Holding ETH Back?

Many in the ETH community are in frustration. They think the Ethereum Foundation is behind the price suppression. Since January, the foundation has sold about 3,800 ETH. Some believe this selling is preventing ETH from rising.

Vitalik Buterin, Ethereum’s co-founder, denies these claims. He said in an X post on August 31 that the sales were for supporting different projects and charity, not for personal profit. But the community remains suspicious.

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What’s Next for Ethereum?

Now, everyone’s watching the support level at $2,120. If Ethereum falls below this, the next support is at $1,548. But it’s not all doom and gloom. If Bitcoin starts a rally, Ethereum might follow. The community is waiting for that to happen.

Will Ethereum rise or fall? The answer isn’t clear yet, but the coming days will be critical.