Ethereum price may likely has a move under $300 in the near future, trigger a drop towards $250 – $ 280 range

Ethereum price was pushing higher from last week’s lows, at least until the past few hours. In the span of about 30 minutes earlier today, ETH dropped from $355 or so to $344, marking a small yet notable drop. At press time, ETH is trading around at $338, a slight decrease of nearly 5% over the past 24 hours.  This weakness and continued inability to surmount the resistances at $365 – $ 375 in the near term is sparking fears of a deeper drop.

Meanwhile, a surge in the hype surrounding DeFi projects this year sparking higher gas fees may have to the metric reaching an all-time high.

Ethereum price drop triggers fears of a steeper correction.

Crypto analyst Michael Van De Poppe recently said that he fears moving under $300 soon. Van De Poppe recently shared the chart below, which shows that the cryptocurrency remains below the aforementioned resistance. This may trigger a drop towards the local lows at $315, then even lower into the $250-280 range.

He stated:

“$ETH #ETHEREUM Further momentum downwards to expect here. The crucial area that I’ll be interested in is $250-280. For a while, actually.”

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Another trader has echoed his concern. This other trader said that unless Ethereum reclaims $360 soon, it is not in bullish short-term standing. He added that the cryptocurrency could drop as low as $280 in the coming weeks.

Despite this weakness in ETH’s price, social media trends purportedly indicate that now is a good buying opportunity. According to Santiment, social media mentions of Ethereum are reaching six-month lows. This comes as the DeFi space has rapidly slowed down as ETH’s price has dropped.

While this may seem bearish, Santiment believes that this indicates that now may be a good time to enter an Ethereum position.

They stated:

“The social volume of #Ethereum is nearing 6-month low levels across social discourse platforms as traders look elsewhere for volatility to trade. However, assets like $ETH typically see the biggest buy opportunities when crowds are disinterested.”

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Other data indicates that ETH traders are currently overwhelmingly bearish on the coin. As reported by Bitcoinist previously, data shows that the funding rates of the ETH future market on Binance is currently negative, which only takes place from 3% – 5% of the time.

Counterintuitively, this may suggest that Ethereum may soon move higher. Negative funding rates in consolidation are indicative of a market that has the potential to move higher.

The Ethereum hash rate broke the 250 TH/s barrier for the first time since August 2018

According to Glassnode, on October 6, 2020, the Ethereum hash rate hit an all-time high of more than 250 terahashes per second (TH/s), marking an 80 percent increase since January 2020.

Furthermore, the mining pool F2Pool also claims that mining Ethereum instead of Bitcoin is currently three times more profitable. Specifically, after subtracting the costs, BTC Antminer S19 Pro miners can make $ 4.33 in profit in 24 hours, while ETH miners can expect a return of $ 15.56 over the same period it has a current 259% higher return.

The DeFi surge, coupled with the growth of stablecoins, pushed Ethereum transaction fees to an all-time high in the third quarter of 2020. Ethereum Miners made $ 166 million from transaction fees in September alone. Bitcoin miners only earned $ 26 million in fees over the same period.

You can see the ETH price here.

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