The relief rally for Ethereum (ETH) is likely to encounter selling pressure near the $2,300 level, suggesting that bears are attempting to establish this as a resistance point. On Monday, ETH posted a 2.5% gain as the leading altcoin tries to recover from the recent sell-off triggered by exchange-traded fund (ETF) investors and major market whales. Since the debut of U.S. Ether ETFs on July 23—when ETH was trading above $3,400—Ether has experienced a sharp decline of over 32%. This drop is partly due to consistent negative outflows, with cumulative net outflows surpassing $568 million since the launch of the ETFs.
At the time of writing, ETH was trading at $2,345.
ETH after surging almost 32% from the previous low of $2,111 to $2,820 witnessed a sharp correction and prices dropped to $2,400. The asset failed to hold and sustain the support of $2,400 and the prices further dropped to $2,150. ETH has a strong support at the key level of $2,150 and the lower shadows indicate buying around these levels. If it holds and sustains above the support then we may expect the bulls to resume the up move whereas if the price breaks and closes below $2,150 then we may expect further downfall.
| Support 2 | Support 1 | Asset | Resistance 1 | Resistance 2 |
| $1,905 | $2,150 | ETH | $2,400 | $2,850 |
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