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.

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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

Popular crypto analyst Il Capo of Crypto has returned to social media platform X after over two months of hiatus to drop an interesting outlook for Bitcoin and Ethereum in the coming months in light of the recent correction since the beginning of October. The analyst, which has been so big on a looming altseason since the beginning of the year, has revealed a bearish outlook for Bitcoin and even Ethereum (king of altcoins) in the short term.

Known for his sometimes controversial and often contrarian predictions, Capo returned just as the market experienced a notable correction in October, sharing his bearish outlook for both Bitcoin and Ethereum. His latest prediction is that Ethereum could plummet as low as $1,800 before seeing any substantial recovery.

ETH’s Predicted Decline

Ethereum has already dropped by 10% in the past seven days and is currently trading around around $2,330, but according to Capo, this decline could worsen. He predicted that ETH might fall further into the $1,800 to $2,000 range, which is a possible 23% dip from its current price, before eventually rebounding. However, he believes an altcoin season will still materialize. 

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Quick update:

There’s a possibility of one last shakeout, with $BTC testing the $48k-50k zone and $ETH $1.8k-2k, before the real altseason begins.

If that happens, I’ll be adding more to my altcoin bags. https://t.co/sx6u8wPNrK

— il Capo Of Crypto (@CryptoCapo_) October 2, 2024

Capo’s track record of analysis since the beginning of the year shows a consistent belief in the upcoming dominance of altcoins. Throughout 2024, he has repeatedly emphasized the potential for altcoins, particularly Ethereum, to outperform Bitcoin as profits generated from BTC flow into smaller assets. However, the altcoin season has yet to materialize, and Bitcoin has continued to dominate the crypto investment scene.

Time To Go Long On Ethereum?

It’s worth noting that Crypto Capo’s predictions often have a certain lore attached to them. There is a running joke among some investors that whenever Capo makes a prediction, the market tends to do the opposite. This goes as far back as his prediction of Bitcoin falling to $12,000 last year, but the crypto eventually broke past resistance levels. Now, with Capo predicting the possibility of continued decline for Ethereum and Bitcoin amid October’s bullish market sentiment (often dubbed “Uptober”), it raises the question from many investors if his bearish call is far-fetched.

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Only time will tell if the market plays out according to Capo’s analysis. However, given the current inflow of investments and the crypto market, which has mostly rallied in October, it wouldn’t be surprising if Ethereum rebounds rather than experiences the significant drop Capo is forecasting.

Naturally, many savvy whales and traders have seen the current decline as an opportunity to “go long” and accumulate more Ethereum in expectation of the resumption of inflows. This sentiment is reflected through the US Spot Ethereum ETFs, which witnessed $14.45 million in inflows yesterday despite the price correction.

Interestingly, it is important to note that Capo’s analysis is only talking about a possible case and remains bullish for Ethereum in the long term. 

Featured image created with Dall.E, chart from Tradingview.com

Ethereum has seen a 15% drop since hitting its recent high of $2,729 last Friday, leaving analysts and investors feeling frustrated with the price action. Many expected the bullish trend to continue, but Ethereum has struggled to maintain upward momentum. 

Concerns are mounting as some market observers predict a deeper decline, possibly falling to yearly lows around $2,150 if the current support level fails to hold. This has reignited fear and uncertainty across the market as Ethereum’s price sends mixed signals.

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The recent decline has shaken confidence, and market participants anxiously await a clear direction. Analysts are closely watching Ethereum’s next move and whether it can reclaim support levels to resume an upward trajectory. 

The coming days are expected to be crucial for Ethereum’s price action, with investors bracing for heightened volatility in response to these shifting market conditions.

Ethereum Testing Crucial Support Line

Ethereum is now trading at a critical juncture that could define its direction in the coming week. Price action over the next few days is expected to be pivotal for Ethereum and the entire altcoin market. Analysts closely monitor whether ETH can maintain its strength as the second-largest cryptocurrency by market cap. Failing to hold above key support levels could signal a broader market decline.

Analysts and investors eagerly await an Ethereum recovery as it hovers above a crucial support line that could be the launchpad for a rally to new highs. One top analyst, Carl Runefelt, recently shared his insights on X, highlighting the current trendline supporting ETH price. 

In his technical analysis, Runefelt warns that the price could drop significantly if Ethereum fails to hold this trendline. If the price breaches this support, he identifies $2,150 as the next potential target.

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A fall to these levels would likely shake out many investors expecting a bullish continuation in the weeks ahead. If ETH loses this key support, it may lead to uncertainty and heightened volatility. This fall would keep market participants on edge while waiting for the next move.

ETH Price Action Details

Ethereum (ETH) is trading at $2,350 after failing to establish a higher high above $2,820. This recent price action has disappointed bulls, as ETH has lost crucial support levels, including the 4-hour 200 exponential moving average (EMA) at $2,542 and the simple moving average (MA) at $2,466.

These indicators are key in determining short-term trends, and their loss as support has raised concerns about further downside risk.

For the bulls to regain momentum, ETH must break above the 4-hour 200 EMA and the 4-hour MA and successfully hold these levels as support. Reclaiming these indicators would signal renewed strength and pave the way for another attempt to increase prices.

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However, a deeper correction is likely if Ethereum fails to recover these levels. Key support around $2,100 becomes the next target, with the potential for even lower prices. Investors are closely monitoring these levels, as the coming days will be critical in determining whether ETH can recover or continue its downtrend.

Featured image from Dall-E, chart from TradingView