Ethereum reclaimed $2,408 as of September 3, 2026, recovering its footing after a sharp drop to $2,370 during the previous trading session. Analyst Daan Crypto Trades identified $2,400 as a pivotal make-or-break level. Failing to hold above this threshold could see the asset trapped back in its previous trading range.
Broader crypto market conditions remain pressured by global geopolitical tensions. Brent crude oil prices spiked to a six-week high of $97.39 per barrel. The sudden surge followed a September 3 Reuters report regarding renewed clashes between the United States and Iran, weighing heavily on risk assets including Ethereum.
At the same time, markets are bracing for central bank monetary tightening. Prediction market data from Kalshi indicates a 53% probability that the Fed will raise interest rates by 25 basis points at its September 16 meeting. While this probability has eased from an earlier 68% projection, it continues to burden the crypto market with uncertainty.
Mixed Technical Signals
Short-term indicators have yet to confirm a bullish reversal. Ethereum’s four-hour chart shows the Relative Strength Index (RSI) sitting at 43.86 - remaining below the neutral 50 threshold. Its signal line trails at 41.48, indicating that selling momentum still dominates the market.
However, the longer-term daily structure paints a much stronger picture. Ethereum continues to trade steadily above its 50-day Moving Average (MA) at $2,064.47 and 200-day MA at $2,031.85. The 50-day MA crossing above the 200-day MA has also formed a classic golden cross pattern.
Capital inflows also remain positive. The Chaikin Money Flow indicator stands at +0.22, signaling that buying pressure still outweighs selling pressure. The indicator has begun to flatten out following a series of sharp increases throughout August.
Calculating Liquidation Levels
Ethereum’s immediate resistance now rests at the Bollinger Bands midline at $2,429.79. If the price breaks above this hurdle, a major cluster of liquidation sell orders sits tightly in the $2,535 to $2,550 range.
Significant downside risks loom as well. The nearest cluster of liquidations is concentrated between $2,350 and $2,360. A dip below this zone could trigger a cascade of forced selling from leveraged long traders.
For day traders, operating within this tight band of liquidation levels carries compounded risk. Misjudging macro sentiment could result in forced closures amid sudden price swings.
Reported via crypto.news.
Read also: How Crypto Staking Works and Its Risks
Previously: Ethereum Breaks Below $2,400 - Dragged Down by US-Iran Tensions and 68% Chance of Fed Rate Hike
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
