Ethereum (ETH) has recently experienced a significant decline, dropping 10.3% from its peak last week due to a market downturn. This performance has sparked concern among analysts and investors, raising questions about the potential for another correction in the near future.
Ethereum Whales Make Significant Moves
Ethereum has been struggling to regain critical resistance levels since its correction earlier in October. On a recent Tuesday, ETH’s value plummeted from the $2,600 region to $2,300, oscillating between these levels over the past few days. This volatility has been exacerbated by reports of substantial investor movements.
An on-chain analytics firm, Lookonchain, reported that an Ethereum Initial Coin Offering (ICO) participant began selling their holdings amidst the market’s decline. This whale transferred 12,010 ETH, valued at approximately $31.6 million, to Kraken after a two-year dormancy. Shortly after, the same address liquidated an additional 19,000 ETH, worth around $47.54 million.
On October 3, crypto analyst Ali Martinez noted a substantial transfer of ETH to exchanges, amounting to roughly $259.2 million. Data from CryptoQuant indicated that about 108,000 ETH were moved to exchanges within 24 hours, a significant increase from the previous day. These developments have amplified bearish sentiments, with community members expressing concerns over Ethereum’s performance and the potential for increased selling pressure.
Future Price Predictions for Ethereum
Crypto investor Ted Pillows highlighted Ethereum’s underperformance in 2024, despite the approval of Ethereum spot ETFs. He observed that while ETH tends to rise with Bitcoin during market upswings, it suffers more severe declines when the market falters. “Whenever BTC has pumped 5%, ETH has pumped 3%, but whenever BTC has dumped 5%, ETH has dumped 12%-15%,” Ted remarked.
Despite these challenges, Ted remains optimistic, recalling instances in 2020-2021 when Ethereum was deemed “dead,” yet it eventually outperformed Bitcoin. He speculates that Ethereum might face “one last flush” to $2,200 before a potential price reversal.
Similarly, trader Crypto General anticipates a possible retest of the $4,000 mark next month, expecting ETH to rebound from its current levels. However, he cautions that a break below the trendline could lead to prices touching the $2,100 level.
Key Resistance Levels and Market Outlook
Market analysts suggest that Ethereum needs to reclaim the $2,400 resistance level to potentially rally towards $2,800. Previously, Daan Crypto Trades identified $2,850 as a crucial resistance level to monitor. Securing this level could signal a trend reversal for Ethereum, aligning with the horizontal level that initiated the February-March surge to ETH’s yearly high of $4,090.
As of now, Ethereum has seen a positive movement, trading at $2,431, which marks a 4.3% increase on the daily chart.
