Ethereum is falling as I type, reflecting overall performance across the board. The almost 2% decline in the cryptocurrency scene is due to the decline of Bitcoin, Ethereum and top altcoins. Today, the total market capitalization has fallen to $2.17 trillion. If bears keep pushing, it could post even bigger losses, reversing September’s gains.

Ethereum Under Pressure, Will $2,350 Offer Support?

CoinMarketCap data only for the last week can be seen that Ethereum fell 10%, pushing losses below $2,400, former support, now resistance. While it might seem that the keen decline for most of this week is discouraging participation, some investors are accumulating near-spot prices.

To the Block data on October 3 shows that 1.89 million Ethereum addresses purchased 52 million ETH ranging from $2,311 to $2,383. The fact that a huge number of buyers are choosing to buy at an average price of $2,350 means that this is a support level that investors should watch closely.

Given the amount of ETH accumulated, sellers would have to put in more effort to break below this level, forcing the coin to reach $2,100 and August lows. Comparing traders’ actions to the September range, the $2,350 level is falling at around 61.8% and 78.6% of the Fibonacci retracement levels.

What’s next for ETH?

Technically, cryptocurrency prices, including ETH, tend to find support around this Fibonacci retracement zone. Therefore, the price reaction between $2,100 and $2,350 is likely to 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 emerging support and the Fibonacci retracement zone would be a huge boost. In this case, ETH may rise even above $2,800, while bulls are targeting $3,500.

Conversely, any keen drop below the August and September lows can easily trigger panic. From this, ETH may fall below $2,100 and $2,000 and even to $1,800, confirming the losses from early August.

Given the state of price action, sellers have the upper hand. Over the last few trading sessions, centralized exchanges have seen massive outflows of funds.

This morning The Data Nerd revealed that Wintermute, a cryptocurrency market maker, transferred 14,221 ETH to Binance, indicating that they could sell it. 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