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Ethereum (ETH) is down 10.3% from last week’s highs following the recent market downturn. Its results worried many analysts and investors, considering that ETH may be close to another correction.
Ethereum whales are sending millions to exchanges
Since the October 1 correction, Ethereum has struggled to reclaim some key resistance levels. On Tuesday, the cryptocurrency’s price dropped from the $2,600 zone to the $2,300 level, oscillating between the lower and upper ranges of this support level over the past few days.
Since then, news has emerged in the industry of multiple investors moving their tokens, alarming the community. Online analytics firm Lookonchain has revealed that a participant in the Ethereum Initial Coin Offering (ICO) sold its tokens amid market declines.
The report shows that a week ago after two years of inactivity, the whale deposited 12,010 ETH worth $31.6 million with Kraken. Two days ago, another 19,000 ETH was sold at the same address for approximately $47.54 million.
Today, cryptocurrency analyst Ali Martinez highlighted that on October 3, approximately $259.2 million worth of ETH was sent to cryptocurrency exchanges. According to CryptoQuant data shared by Martinez, 108,000 ETH was sent to exchanges in the last 24 hours, which is a significant augment compared to the previous day.
This news continued to fuel bearish sentiment among many in the community who are disappointed with Ethereum’s performance and fear that the ETH price could soon come under significant selling pressure.
Will ETH hit lower levels again soon?
Cryptocurrency investor Ted Pillows excellent that ETH was “one of the weakest cryptocurrencies in 2024.” Despite the approval of Ethereum spot ETFs (exchange-traded funds), the cryptocurrency “underperformed almost every large cap.”
He also pointed out that ETH rose with Bitcoin when the market was rising, but fell much more when the market was struggling. “Every time BTC pumps 5%, ETH pumps 3%, but whenever BTC pumps 5%, ETH pumps 12-15%,” he noted.
However, Ted explained that every time Ethereum was declared “dead,” like in 2020-2021, it ultimately outperformed BTC. Based on this, the investor believes that the “altcoin king” can face the “last flush” up to $2,200 before reversing.
Likewise the Crypto General trader suggested that the cryptocurrency could test $4,000 again by next month as it expects ETH to rebound from current levels. However, he assured that if the price breaks the trend line, “we can easily see the price reaching the $2,100 level.”
Other market watchers have pointed out that Ethereum needs to clear the $2,400 resistance level to see a potential rebound towards $2,800. Previously, Daan Crypto Trades had set the resistance level at $2,850 as one of the key levels to watch.
The analyst believes that regaining this level would signal a trend reversal for the cryptocurrency. This zone corresponds to a horizontal level that started rising from February to March to a yearly high of ETH of $4,090.
At the time of writing, the price of ETH has seen a positive spike, currently trading at $2,431. This result represents an augment of 4.3% in the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com