FX.co ★ sandra75 | #Ethereum chart analysis

Hello everyone! Ethereum lost almost 9% relative to Monday's close. And although this is not yet a reversal of the uptrend, it's better to play from the short side, taking into account the end-of-week factor. Traders are exiting the altcoin with an eye on outflows from spot Ethereum ETF. On October 7 investors withdrew about $161 mln, and over the previous five trading sessions cumulative outflows exceeded $500 mln. As always, rising US bond yields and a stronger dollar are pulling capital away from the crypto market. Ethereum is falling faster than Bitcoin, which indicates additional weakness in ETH itself. A positive factor is the CFTC proposal of October 5 to create a federal oversight system for crypto exchanges, however it does not yet offset capital outflows. Today the preliminary University of Michigan Consumer Sentiment Index is expected: forecast — 47.5 versus the previous 48.1 points. A strong result could support the dollar and increase pressure on ETH. Next week the key reference is US inflation on October 14. I expect that by the end of the day ETH will be at the nearest support — $2 450, the next — $2 408. Primary target — $2 440, on a break — $2 400. Resistance — $2 520, then $2 560–2 588. Alternative upside target — $2 560. A close above $2 588 would invalidate the bearish scenario.