Veteran trader Peter Brandt identifies $2,830 as a critical level for Ethereum (ETH), saying a short trade becomes invalid if ETH rises above that threshold.
Despite the dovish sentiment expressed by Federal Reserve Chairman Jerome Powell, the price of Ethereum (ETH) remains under pressure, with a number of analysts predicting further declines in September.
According to a recent analysis by renowned market analyst Peter Brandt, Ethereum faces significant resistance at $2,814. This level has been tested several times, and current price action shows ETH hovering just below this critical threshold.
Brandt sees ETH as a clear short selling opportunity, suggesting that a break above $2,830 will invalidate this trade. Conversely, if selling pressure continues, Ethereum could see further declines towards the $1,980 support level.
In response to a user’s question about the pessimistic forecasts for Ethereum, Brandt attributed this to a clear imbalance in market sentiment: sellers are currently more motivated to sell than buyers are to buy.
Chain data confirms selling pressure
Confirming Brandt’s bearish outlook, IntoTheBlock’s net flow metrics for large ETH holders show sustained selling pressure on Ethereum. The negative net flow trend over the past few months indicates that large holders are consistently dumping more ETH than they are accumulating, supporting the idea of sustained selling activity.
Over the past 30 days, net flow has fallen by 76.53%, further confirming that sellers have become more aggressive in unloading their assets.
Additionally, several well-known Ethereum whales are selling their holdings on centralized exchanges, particularly Binance. Two notable transactions stand out: the Ethereum Foundation’s sale of 35,400 ETH for about $95 million and Jump Trading’s sale of 88,900 ETH for about $276 million.
These significant sales, combined with other large transactions, likely contributed to the recent downward pressure on the ETH price.
Traders remain cautious
In a separate analysis, Michael van de Poppe, founder of MN Consultancy, proposed that ETH could recover if it breaks through the $2,550 level, potentially reaching $3,000. However, he advised traders to remain cautious and look for confirmation of any breakout before opening new positions.
At the time of publication of this article, the Ethereum rate has grown by 2.8% over the past 24 hours and amounted to $2551.
