3 hours Ago By Ezra B
Ethereum (ETH) experienced a 10.3% decline from its recent highs last week, amid a broader market downturn. This significant drop has raised concerns among analysts and investors who fear another potential correction for the cryptocurrency.
Despite efforts, Ethereum has struggled to reclaim key resistance levels since the October 1 correction, with its price plummeting from the $2,600 zone to around $2,300, where it has fluctuated for several days. Adding to the market anxiety, news surfaced of substantial movements by major investors, known as “whales,” who transferred large amounts of ETH to exchanges. On-chain analytics firm Lookonchain reported that an Ethereum Initial Coin Offering (ICO) participant, who had been dormant for two years, recently moved 12,010 ETH (worth $31.
6 million) to the Kraken exchange one week ago. This same address sold an additional 19,000 ETH valued at roughly $47.54 million just two days ago.
Crypto analyst Ali Martinez highlighted that on October 3, approximately $259.2 million worth of ETH had been sent to various crypto exchanges. Data from CryptoQuant shared by Martinez indicates that 108,000 ETH were moved to exchanges within the last 24 hours, a significant increase from the previous day.
This surge in exchange deposits has heightened bearish sentiment within the community, as many fear that ETH might face intense selling pressure. Investor Ted Pillows commented on ETH’s disappointing performance, noting it as “one of the most underperforming cryptos in 2024.” He pointed out that despite the approval of Ethereum spot ETFs (exchange-traded funds), the cryptocurrency has lagged behind almost all large-cap assets.
Ted observed that ETH tends to climb alongside Bitcoin during market ups but drops more sharply during downturns. He cited instances where Bitcoin’s 5% gains would see ETH rising only 3%, whereas Bitcoin’s 5% drops would result in ETH falling by 12%-15%. Despite these concerns, Ted remained hopeful, stating that historically, when Ethereum was deemed “dead,” it eventually outperformed Bitcoin.
He speculated that ETH might experience “one last flush” to $2,200 before reversing its trend. Similarly, trader Crypto General suggested that Ethereum could retest the $4,000 level by next month, anticipating a bounce from current levels. However, he cautioned that a break below the trendline could see the price drop to $2,100.
Other market analysts highlighted critical resistance levels for Ethereum. For instance, reclaiming the $2,400 resistance level could trigger a bounce toward $2,800. Daan Crypto Trades had previously identified the $2,850 mark as a key resistance level, asserting that surpassing this threshold would indicate a trend reversal.
This level aligns with the horizontal support that initiated Ethereum’s February-March run to its yearly high of $4,090. As of now, Ethereum has shown a positive uptick in price, trading at $2,431, which represents a 4.3% increase in the daily timeframe.
The market continues to closely watch Ethereum’s movements, anticipating whether it will reclaim crucial resistance levels or face further declines..
