Ethereum
Analyst Predicts Ethereum Nosedive, Cautions Investors To Prepare For $2,700 Target
Amid the ongoing bloodbath in the cryptocurrency market, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has not been spared. Over the past week, ETH has experienced a significant 9% price decline, bringing it down to the $3,130 level.
As market participants closely monitor the situation, the focus now lies on crucial levels that must be held back to prevent a deeper retrace that could lead to substantial losses and heightened liquidation rates not witnessed in months.
Make-Or-Break Moment For Ethereum Price
Crypto analyst “Inspo Crypto” has drawn attention that Ethereum’s price has retraced to levels last seen at the beginning of May.
According to the analyst, the upcoming 8-hour trading period, represented by a 1-day candle, will be a critical juncture to determine whether the bulls have capitulated or can muster a comeback.
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A retracement above the abovementioned level could be considered a deviation from the bearish trend. However, if Ethereum fails to retest the lower trend channel at $3,170, it could pave the way for a further decline towards $2,700, consequently impacting altcoins and leading to significant losses across the market.
Upward Trajectory To $5,000 if Price Holds At $3,170
The analyst further asserts that, in his opinion, Ethereum has been operating within a new trend channel since October 2013. Hence, if ETH manages to hold its price within the range of $3,170 without breaking down, it would confirm an upward trajectory towards $5,000. It is important to note that this timeframe extends until the end of the year.
Additionally, it should be considered that Ethereum is still operating within a long-term trend channel.
If the described scenario unfolds, it would also confirm the long-term trend channel, indicating that ETH was trapped in a bearish phase between August 2023 and February 2024 and is now embarking towards $8,000 over the coming months.
However, it is crucial to acknowledge that this analysis does not account for external factors such as monetary policy decisions or geopolitical conflicts.
Nevertheless, if Ethereum manages to hold the $3,170 level and begins an upward ascent, the possibility of an altcoin season becomes increasingly feasible, as suggested by the analyst.
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Ultimately, ETH’s next moves will affect its trajectory and impact the broader crypto landscape, particularly the altcoin market, which has also seen significant losses in recent days.
ETH trades at $3,130 at the time of writing, reflecting a 5% decline in the past 24 hours. As a result, it becomes crucial that the token closes above the aforementioned critical level of $3,170 in the coming hours to prevent potential additional losses, as emphasized by the analyst.
Featured image from DALL-E, chart from TradingView.com
Ethereum
Ethereum ICO Participant Offloads 6,000 ETH As Bearish Sentiment Intensifies
According to data from CoinMarketCap, the price of Ethereum slipped by 10.23% over the last seven days in line with the general market negative movement. This crypto market downturn has been attributed to multiple factors including heightened geopolitical tensions in the Middle East and rising liquidations of long positions.
While Ethereum has experienced some rebound in the last day gaining by 3.21%, investors remain uncertain of a full price recovery with bearish sentiments raving through the market. Notably, an Ethereum ICO participant has now sold off a substantial amount of ETH intensifying concerns of a prolonged downward trend.
Ethereum ICO Wallet Continues Selling Spree, Offloads 40,000 ETH In Two Weeks
According to data from blockchain analytics firm, Lookonchain, an Ethereum wallet with the address “0xBF4” moved 6,000 ETH worth $14.11 million to the Kraken exchange on Friday. So far, the address has been identified as an early Ethereum investor who acquired 150,000 ETH valued at $368 million in the asset’s initial coin offering (ICO) in 2014.
Data from Lookonchain highlights this is the second ETH sale by “0xBF4” in the last week after the ICO participant initially sold 19,000 ETH, valued at $47.54 million over Wednesday and Thursday. Notably, this ETH whale has transferred out 40,000 ETH worth $101 million since September 22, holding a balance of 99,500 ETH valued at $238 million.
Generally, massive token offloads by large holders e.g. whales are interpreted as bearish signals as they indicate a lack of confidence in the asset’s long-term profitability. Sales such as those seen from “0xBF4” may trigger a panic selling from smaller investors inducing a stronger downward pressure on Ethereum’s price.
Related Reading: Crypto Capo Returns After 2 Months To Predict Ethereum Decline To $1,800, Is It Time To Go Long?
108,000 ETH Moved To Exchanges In 24 Hours
Aside from the wallet address “0xBF4”, other investors have recently sold off large amounts of ETH. According to analyst Ali Martinez, 108,000 ETH valued at $259.2 million have been transferred to exchanges in the last day. This massive sale activity indicates a heightened sentiment in the ETH market.
Currently, Ethereum trades at $2,399 following its recent price rally. However, its daily trading volume has declined by 17.48% and is valued at $14.61 billion. If bearish sentiments persist, ETH could retrace to around $2,200 at which lies its next significant price level. However, amidst massive selling pressure, the altcoin could trade as low as $1,600.
With a market cap of $291.40 billion, Ethereum continues to rank as the second largest cryptocurrency, with a market dominance of 13.47%.
Featured image from NullTX, chart from Tradingview
Ethereum
108,000 ETH Sent To Exchanges, Will It Revisit $2,200?
Ethereum (ETH) has seen a 10.3% drop from last week’s highs following the recent market downturn. Its performance has worried many analysts and investors, considering ETH could be near another correction.
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Ethereum Whales Send Millions To Exchanges
Ethereum has struggled to reclaim some key resistance levels since the October 1 correction. On Tuesday, the cryptocurrency saw its price nosedive from the $2,600 zone to the $2,300 mark, hovering between the lower and higher range of that support level for the past few days.
Since then, news of multiple investors moving their tokens has hit the industry, alarming the community. On-chain analytics firm Lookonchain revealed that an Ethereum Initial Coin Offering (ICO) participant sold their tokens as the market bleed.
Per the report, the whale deposited 12,010 ETH, worth $31.6 million, to Kraken a week ago after being inactive for two years. The same address sold another 19,000 ETH two days ago, around $47.54 million.
Today, crypto analyst Ali Martinez highlighted that on October 3, roughly $259.2 million worth of ETH had been sent to crypto exchanges. According to the CryptoQuant data shared by Martinez, 108,000 ETH were sent to exchanges in the last 24 hours, significantly increasing from the day before.
The news continued to fuel the bearish sentiment among many community members, who are disappointed about Ethereum’s performance and fear ETH’s price could soon face significant selling pressure.
Will ETH Revisit Lower Levels Soon?
Crypto investor Ted Pillows noted that ETH has been “one of the most underperforming cryptos in 2024.” Despite the approval of Ethereum spot ETFs (exchange-traded funds), the crypto has “underperformed almost every large cap.”
He also pointed out that ETH surged alongside Bitcoin whenever the market was up but dropped significantly harder when the market struggled. “Whenever BTC has pumped 5%, ETH has pumped 3%, but whenever BTC has dumped 5%, ETH has dumped 12%-15%,” he remarked.
However, Ted explained that every time Ethereum was considered “dead,” like in 2020-2021, it has eventually outperformed BTC. Based on this, the investor believes that ‘the king of Altcoins’ could face “one last flush” to $2,200 before the reversal.
Similarly, trader Crypto General suggested that the cryptocurrency could retest the $4,000 by next month as he expects ETH to bounce from the current levels. However, he asserted that if the price breaks the trendline, “we can easily see the price touching the $2100 level.”
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Other market watchers pointed out that Ethereum must reclaim the $2,400 resistance level to see a potential bounce toward $2,800. Previously, Daan Crypto Trades set the $2,850 resistance level as one of the key levels to watch.
The analyst considers that reclaiming this level would signal a trend reversal for the cryptocurrency. This zone corresponds with the horizontal level that started the February-March run to ETH’s yearly high of $4,090.
As of this writing, ETH has seen a positive price jump, currently trading at $2,431. This performance represents a 4.3% surge in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
Ethereum
Over 1.8 Million Addresses Bought 52 Million ETH At $2,350: Will Ethereum Continue Falling?
Ethereum is down when writing, mirroring the general performance across the board. The nearly 2% drop in the crypto scene is due to the contraction of Bitcoin, Ethereum, and top altcoins. At present, the total market cap is down to $2.17 trillion. It could post even more losses should bears press on, reversing the gains of September.
Ethereum Under Pressure, Will $2,350 Offer Support?
In the last week alone, CoinMarketCap data shows that Ethereum is down 10%, pushing losses below $2,400, a former support, now resistance. While it could appear that the sharp dump of the better part of this week is discouraging participation, some traders are accumulating at around spot rates.
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IntoTheBlock data on October 3 shows that 1.89 million Ethereum addresses bought 52 million ETH at around the $2,311 and $2,383 range. That a large amount of buyers choose to buy, on average, at $2,350 means this is a support level that traders should closely watch.
Considering the number of ETH accumulated, sellers would need to exert more effort to break below this level, forcing the coin towards $2,100 and August lows. Comparing traders’ action and the September range, the $2,350 level falls at around 61.8% and 78.6% Fibonacci retracement levels.
What’s Next For ETH?
Technically, crypto prices, including ETH, tend to find support around this Fibonacci retracement zone. Accordingly, how prices react between the $2,100 and $2,350 zone will likely shape the medium to long-term trend.
Related Reading: What’s Holding Bitcoin Back? Analyst Says $71,000 Is The Magic Number
A refreshing bounce around this emerging support and Fibonacci retracement zone would be a massive boost. In this case, ETH could rally, even above $2,800, as bulls target $3,500.
Conversely, any sharp dump below August and September lows may easily trigger panic selling. Out of this, ETH can slump below $2,100 and $2,000 and may fall to as low as $1,800, confirming losses of early August.
Considering the state of price action, sellers have the upper hand. Over the past few trading sessions, centralized exchanges have had massive outflows.
Earlier today, The Data Nerd revealed that Wintermute, a crypto market maker, moved 14,221 ETH to Binance, indicating that they might sell. In August, Wintermute and other leading market makers, including Jump Capital, sold over 130,000 ETH, forcing prices lower.
Feature image from DALLE, chart from TradingView
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