Why Ethereum must hold above $1,800 to avoid further sell-off
What happened
Ethereum (ETH) has recently faced significant downward pressure, struggling to maintain its footing after a 10% decline over the past month. Despite a brief rebound above the US$2,000 mark, the overall market sentiment remains bearish, with ETH consistently failing to hold key psychological and technical levels. This downward trajectory has seen the cryptocurrency lose momentum from its earlier position in the US$2,200–US$2,400 range.
The past few weeks have been characterised by a pattern of lower highs and weaker rebounds, indicating that sellers are dominating the market. Attempts to reclaim higher resistance levels have been met with renewed selling pressure, particularly during active US trading hours. This persistent pressure has pushed Ethereum closer to a critical support zone around US$1,800.
Adding to the concerns, ETH's dip below US$2,100 marked a significant shift in its short-term market structure. This level had previously offered some psychological comfort to traders, but its repeated failure to hold has eroded confidence. Intraday recoveries have been short-lived, unable to attract the sustained buying needed to establish a stable base.
Derivatives data also points to underlying weakness. Analytics firm CryptoQuant highlighted that funding rates have remained positive even as prices fell, suggesting an imbalance where long positions are still crowded despite deteriorating market conditions. This scenario increases the risk of cascading liquidations if the price momentum accelerates downwards. Coupled with persistent net outflows from US-listed spot Ethereum Exchange-Traded Funds (ETFs), a significant source of institutional demand has been diminished, leaving the market more vulnerable to further selling pressure.
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Common questions
How is Ethereum (ETH) taxation handled for Australian investors?
In Australia, the Australian Taxation Office (ATO) considers cryptocurrencies like Ethereum as a form of property for tax purposes. This means that gains from selling, trading, or otherwise disposing of ETH are subject to Capital Gains Tax (CGT). Any losses can also be used to offset capital gains. It's crucial for Australian investors to keep meticulous records of all their cryptocurrency transactions to comply with ATO requirements.
Can I buy Ethereum (ETH) on Australian crypto exchanges?
Yes, Australian investors can readily purchase Ethereum on a variety of local cryptocurrency exchanges. Popular platforms operating in Australia include CoinSpot, Independent Reserve, Swyftx, and BTC Markets. These exchanges typically offer AUD pairing for ETH, allowing users to buy and sell using Australian dollars. It's advisable to compare fees, liquidity, and security features across different exchanges before choosing one.
What regulatory oversight applies to Ethereum trading in Australia?
The Australian financial regulatory landscape for cryptocurrencies is evolving. The Australian Securities and Investments Commission (ASIC) provides guidance for businesses dealing with crypto-related financial products, while AUSTRAC (Australian Transaction Reports and Analysis Centre) supervises digital currency exchanges for anti-money laundering (AML) and counter-terrorism financing (CTF) compliance. While Ethereum itself isn't directly regulated as a financial product, the platforms facilitating its trade are subject to increasing scrutiny to protect consumers and prevent illicit activities.
Ethereum's struggle around US$1,800 is a critical moment for the cryptocurrency. Our analysis explains the downturn, its AUD market implications, and what Aus