ETH Price Dips Amid zkAPI Rollout and Layer 2 Challenges

Ethereum (ETH) has pulled back to $2,681.48 after slipping 2.08% on the day. The asset currently sits below its key short- and medium-term moving averages but remains above long-term support levels.

The recent introduction of zkAPI on the Ethereum mainnet by the Ethereum Foundation and the Open Anonymity Project has enabled AI and API payments in ETH or USDC via zero-knowledge proofs, improving transaction privacy. However, this rollout comes amidst challenges in sustaining ecosystem growth, as Blast, an Ethereum Layer 2 network, announced it will wind down operations later this month due to declining activity and revenue.

The short-term outlook for ETH is bearish, with a 67% probability of further declines, according to analysis. Traders should monitor the $2,714 resistance and $2,649 support as pivots for the near term. In the short term, ETH is expected to move within a daily corridor of $2,649 to $2,713 under typical volatility levels.