Ethereum (ETH) is clinging to a critical support level, with traders closely watching its next move. According to Michael van de Poppe, founder of MN Trading, Ether is at a tipping point that could lead to a decline below $2,800 if it fails to hold its current position. In an Aug. 3 post on X (formerly Twitter), van de Poppe noted, “Ethereum is holding onto the crucial area of support.” He explained that failing to maintain this level may impact Ether by around 4%, pushing Bitcoin (BTC) — currently trading at $60,717 — further into an uncertain range for traders. “If this is lost, Bitcoin is likely going to test $60K and Ethereum will test <$2,800 as the final big correction,” he added.
Potential Decline Below $2,800
Other traders echoed van de Poppe’s concerns. Pseudonymous crypto trader Crypto Wealth suggested that Ether’s price might drop below $2,800 before any recovery begins, stating, “The only other level which seems price could go before a full-blown reversal would be around $2.7K.” Another trader, Poseidon, added, “At this point, the price should sweep the $2,800 lows and test the weekly demand, $2,500-$2,700.”
Michael van de Poppe points to a possible further decline in Ether’s price. Source: Michael van de Poppe
Currently, Ether is trading at $2,885, down 11.09% since July 28, according to CoinMarketCap data. A slight decline to $2,800 could wipe out $259.46 million in long positions, as per CoinGlass data.
Potential for Near-Term Rebound
Despite the bearish outlook, van de Poppe pointed out that there’s potential for a near-term rebound. “If that doesn’t happen and we rotate back up from here, it’s party time,” he stated.
Ether’s price is down 11.09% since July 28. Source: CoinMarketCap
This analysis follows a week of spot Ethereum ETFs oscillating between inflows and outflows, with the overall net amount from July 29 to Aug. 2 totaling outflows of $169.4 million, according to Farside data. On Aug. 1, Katalin Tischhauser, head of investment research at Sygnum Bank, suggested that spot Ether exchange-traded funds could amass as much as $10 billion in assets under management within their first year of trading.
As the market watches closely, Ether’s performance at this crucial juncture will likely set the tone for both its own future and that of Bitcoin.
