Ethereum’s $2,565 support faces a KEY test – Can ETH’s price recover?

Ethereum [ETH] broke out of the two-week trading band, with the short-term trend now in favor of sellers. With each subsequent high, Ethereum created a new floor at $2,625–$2,650 after rising from a low of $2,380 to nearly $2,810.

On the 7th of October, the first sign of an uptrend was broken when large volumes sold off Ethereum through both support levels.

Ethereum saw further declines before rising at $2,535 and then again at $2,559, which will be the next important area to monitor. This is because on the 20th of September, it served as the starting point for an advance.

Notably, the downside was amplified when BitMine’s chairman, Tom Lee, stated that BitMine will stop open-market ETH purchases. This will be upon reaching a 5% cap of circulating supply.

He further stated that Bitmine needs to purchase only 100,000 more ETH to hit the target.

Breakdown Volume reached its highest point ever during the time frame that it traded within. This confirmed increased selling pressure. Thus, if Ethereum can hold at $2,565, there is potential for it to recover back to $2,625-$2,650.

However, losing this level would expose $2,500, followed by $2,380-$2,400, weakening the broader recovery and increasing pressure on buyers.