Ethereum Price Drops Below $2,600 Despite Strong Network Activity and Rising Active Addresses
Ethereum (BITSTAMP:ETHUSD) fell 4.71% to trade at 2,570 USD, slipping below the key $2,600 level. The decline comes alongside a broader market pullback and six consecutive days of withdrawals from U.S. spot Ethereum exchange-traded funds (ETFs), which saw $201.9 million in net outflows on October 6, bringing total outflows since September 29 to approximately $407.8 million.
The price drop contrasts with Ethereum's on-chain metrics, which show elevated network participation. Daily active addresses have risen sharply to near 520,000, and social dominance remains strong. However, risk assets face headwinds from a challenging macroeconomic backdrop. Brent crude oil has climbed near $102, the U.S. 10-year Treasury yield has moved above 5.3%, and the Dollar Index is hovering around 102, renewing concerns about inflation.
In the near term, market participants are watching key technical levels to see if buyers will return. Immediate support for Ethereum rests between $2,450 and $2,500, with further downside protection near $2,400. On the upside, the cryptocurrency must reclaim the $2,640 to $2,700 range to target major resistance between $2,800 and $2,900.
Key points
- Ethereum fell 4.71% to 2,570 USD, dropping below the $2,600 threshold amid broader risk-asset pressure.
- Daily active addresses rose sharply to approximately 520,000, signaling resilient underlying network activity.
- U.S. spot Ethereum ETFs experienced $201.9 million in net outflows on October 6, marking six straight days of withdrawals.
- Macroeconomic headwinds include Brent crude oil trading near $102 and the U.S. 10-year Treasury yield rising above 5.3%.
- Key immediate support lies between $2,450 and $2,500, while resistance is established around $2,640 to $2,700.
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How we writeDisclaimerQuestions and answers
Why is the Ethereum price falling?
Ethereum is facing downward pressure from institutional outflows, with U.S. spot ETFs losing $201.9 million on October 6. Additionally, macroeconomic headwinds, including Brent crude oil trading near $102 and the 10-year U.S. Treasury yield rising above 5.3%, are weighing on risk assets.
What do Ethereum on-chain metrics show?
Despite the price decline, Ethereum's network participation remains strong. Daily active addresses have risen sharply to around 520,000, and social dominance has held firm, indicating a divergence between short-term price momentum and underlying network interest.
What are the key price levels to watch for Ethereum?
Immediate support is located between $2,450 and $2,500, with further support near $2,400. To the upside, Ethereum needs to reclaim the $2,640 to $2,700 region before testing stronger resistance between $2,800 and $2,900.