30s Summary

Ether’s price is facing challenges after hitting $2,768 on October 21. Factors such as increasing supply, decreased network activity, and technical volatility have affected the price. The ETH Coinbase Index indicates a potential sell-off, as Ether saw a 6.5% fall which pushed the index below its 14-day average. An increased ETH supply on exchanges suggests possible sell-offs. The total value locked in Ethereum has also been decreasing since June. High transaction costs on the platform and an inverted V-shaped pattern on the daily price chart suggest a bearish market, potentially driving the price down to $2,300.

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Ether’s price bumped into some issues after reaching $2,768 on October 21. Our buddy Ether was halted by a few things, like more and more supply on the market, less action on the network, and some technical fickleness.

The ETH Coinbase index, a fancy way of looking at how the U.S. compares to the world in Ethereum trading, points to a possible sell-off coming. ETH took a 6.5% tumble from its high point of $2,768, which pushed the index below its 14-day average. Basically, the U.S. isn’t being as bullish as usual when it comes to Ethereum.

An overload of ETH supply on exchanges also sends a signal that some Ethereum owners might be ready to sell off their stash. We’ve seen a four-week high of just under 16 million ETH sitting in exchanges as of October 21.

Another part to consider is Ethereum’s total value locked, or TVL, which has been going downhill since June. The value of Ethereum-based assets locked in various protocols has gone from a massive $66 billion peak earlier this year down to about $48 billion.

To add to it, transaction costs on Ethereum are a headache, keeping away folks interested in launching new projects. Ethereum charges sit at about $0.62 per transaction, way pricier than Solana with its $0.015 fees.

The last bit of info hinting at a bearish Ethereum is an inverted V-shaped pattern showing up on the daily price chart, suggesting a 10% drop is on the horizon. The more folks sell, the more the price might slip, possibly down to the $2,300 area.

So, keep your eyes peeled for the $2,660 and $2,768 price points – these are the big ones to watch. And remember, always do your homework before diving into any moves. You’ve heard it said before and it’s still true: investing and trading carry some risk. You’ve gotta be smart about it!

Source: Cointelegraph