Ethereum's price is hovering near a crucial support level at $2,800, sparking concerns among traders about a potential price drop below this point.

Ethereum Holding Crucial Area of Support

Crypto traders are predicting that if Ether fails to hold a major support level, it might lead to a slide below $2,800. The price is now holding close to this level.

"Ethereum is holding onto the crucial area of support," wrote Michael van de Poppe, founder of MN Trading, in an Aug. 3 X post. Van de Poppe went on to say that if it can't hold, it might have an effect on Ether of about 4% and send Bitcoin, which is currently trading at $60,717, into a zone where traders don't know what to expect.

Van de Poppe stated:

Ether Price May Fall Below $2,800

Cointelegraph shares that the price of Ether can fall below $2,800 before it starts to rebound, according to some traders. A cryptocurrency trader going by the name of Crypto Wealth wrote:

Bitcoin trader Poseidon tacked on:

At the time of publishing, Ether was trading at $2,885, a decrease of 11.09% from July 28, as reported by CoinMarketCap.

According to data from CoinGlass, a small drop to $2,800 will eliminate $259.46 million in long bets.

Van de Poppe noted that, given the present volatility of Ether, a rebound may be possible soon.

"If that doesn't happen and we rotate back up from here, it's party time," he declared.

ETF Activity and Market Impact

This follows a week in which spot Ethereum ETFs saw a range of activity, from inflows to outflows. Outflows totaling $169.4 million were recorded from July 29 to August 2, according to Farside statistics.

Cointelegraph spoke with Katalin Tischhauser, head of investment research at Sygnum Bank, on August 1st, and she informed us that spot Ether exchange-traded funds might reach $10 billion in AUM this year.