Ethereum Breaks Downtrend But Faces Resistance at $2,800

Ethereum has finally broken its year-long downtrend pattern of sellers entering earlier at each peak. However, it's not all good news as the cryptocurrency struggled to push past the $2,800 mark twice within a week, indicating resistance from sellers.

The break above the downtrend line suggests that the earlier selling pattern has ended, and new buyers are entering the market. This was evident in August when Ethereum surged from $1,905 to $2,334 on its highest trading volume of the year.

However, the repeated struggles at $2,800 have raised questions about the strength of buyers and the presence of sellers. Many holders who bought near $3,876 a year ago are sitting at a loss, making it an attractive time for them to exit with minimal losses.

The key to unlocking Ethereum's price potential lies in sustained inflows into U.S. spot Ethereum ETFs, which buy Ethereum whenever investors purchase shares. A daily close above $2,807 on higher-than-September 21 volume would confirm a breakout, while a daily close below $2,627 indicates that sellers at $2,800 may initiate another round of lower highs.