From 24/7 Wall St. · Sam Daodu · · 2m
Ethereum holds $2,600 after two failed breakout attempts
A critical support line has saved Ethereum from collapse, but resistance above $2,600 and a delayed upgrade cloud the recovery outlook.
In brief
A critical support line has saved Ethereum from collapse, but resistance above $2,600 and a delayed upgrade cloud the recovery outlook. Ethereum's survival depends on clearing $2,667 on a daily close to confirm recovery; failure means trading in a range with limited upside. Originally reported by 24/7 Wall St..
Ethereum bounces off critical support
ETH is trading at $2,603 after a 6.43% jump in 24 hours. A trendline connecting four September lows between $2,355 and $2,382 has held firm, preventing a deeper collapse.
Trendline survived major market shocks
The support held through two turbulent days: September 15 when the Senate blocked the CLARITY Act, and September 16 when the Federal Reserve raised rates to 4% for the first time since 2023.
Two rejections above $2,600 complicate recovery
Ethereum has failed to break above $2,600 twice recently. The September 14 rejection at $2,615 is just 0.4% above current price, while the September 11 high of $2,667 sits 2.4% higher.
Exchange reserves hit 2026 lows
Exchange reserves fell to 14.92 million ETH, the lowest of 2026, as funds exit positions. Meanwhile, 42 million ETH is staked, locking up 35% of circulating supply and removing it from sale pressure.
ETF outflows accelerate in September
US spot Ethereum ETFs lost $224.11 million on September 16 alone, the largest single-day outflow of the month. BlackRock's ETHA contributed $110.03 million, or 49% of the total.
Layer 2 networks drain value from ETH
Layer 2 networks process thirteen transactions for every one on Ethereum's base layer, capturing little direct value for the coin. The Glamsterdam upgrade was supposed to redirect more value back to holders but has failed to finalize.
Glamsterdam upgrade stuck in development
The anticipated upgrade intended to redirect Layer 2 value back to ETH holders has failed to finalize on a development network. Complexities around state gas dimensions have caused multiple schedule slips with no confirmed dates.
Recovery hinges on clearing $2,667
Evidence suggests Ethereum may have bottomed: long-term holders held through volatility, exchange reserves are at yearly lows, and sellers appear to be late-entry funds. But two failed attempts above $2,600 leave the outcome uncertain.
Fear and greed index signals caution
The Fear and Greed Index for Ethereum reads 69, signaling greed. Historically, such high readings have preceded short-term corrections just as often as they have confirmed rallies.
The big picture
Ethereum's survival depends on clearing $2,667 on a daily close to confirm recovery; failure means trading in a range with limited upside.
