As the Memorial Day starts, Ethereum price is trading at around $2,550. It increased slightly by 0.69% in the last 24 hours. However, low trading activity during the holiday season can make the prices even more unstable, as experts say. Due to this, the Ethereum price could possibly drop to $2,300.

Key-Takeaways:

• Ethereum prices has a small increase of 0.69% and is trading around $2,550 as the holidays begin
• Low liquidity or trading activity during the holidays can cause the ETH down to $2,300
• Investors are still interested in trading Ethereum, especially with new ETFs that are expected to launch soon. 

Understanding the Impact of Holiday Liquidity in Crypto

During holidays, there’s a few people who usually trade in the market. This means that there’s a decrease in buying and selling, which is called low liquidity. In the world of crypto, it can lead to bigger price swings as medium-sized or even small trades can affect the price value.

According to a study from Financial Innovation, it was stated that during the holiday season, people tend to be more emotional about their investments. This can lead to impulsive decisions and more price changes, adding to the ups and downs of the market.

Big Investors Are Still Interested in Ethereum

Even though the prices of Ethereum tend to be shaky during the holidays, big investors are still interested in trading Ethereum. On May 23, about 22,000 units of Ethereum was bought, putting $58.63 Million into Ethereum EFTS, which is a type of investment fund. This shows that a lot of investors are still confident that the prices of Ethereum will increase from the prices before. 

Not only that, new Ethereum ETFs are expected to come out soon. Experts believe that this could have a big impact on the price since 30% of Ethereum is locked in staking and another 10% is used in smart contracts, which means a large amount of Ethereum is not available for trading. This could mean that, with less Ethereum to buy, there’s more demand from the ETFs which can cause the price to go up. 

Ethereum Price Levels to Watch

According to the charts, Ethereum is in a critical spot as right now it is trading below the important average price line at $2,555. This means that $2,555 is becoming a barrier or resistance that’s making it hard for the prices to increase. There are also signs stating that the price may not go above after hitting the $2,500 mark. 

The bad news is, if Ethereum price drops below $2,500 and can’t hold the average price line, experts believe that it can decrease even further to $2,300. But if it’s able to go past 2,700, it can lead to $3,000 which is a 17% gain for the Ethereum prices. 

Conclusion

As the holiday weekend continues, the Ethereum price can go either way. But it is safe to say that there is a large number of big investors that are still interested in trading Ethereum, and upcoming Ethereum ETFs seem like a good sign for the possible increase in price value. However, low trading activity and tough resistance levels could still affect the prices.