Ethereum (ETH) Nosedives 10.3% From Last Week's Highs, Will It Revisit Lower Levels Soon?

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

Ethereum (ETH) price analysis reveals a 10.3% decrease from last week’s highs as the recent market downturn seems to be impacting ETH’s price movement, sparking concerns among analysts and investors about the possibility of another correction for the cryptocurrency.

After the October 1 correction, Ethereum has faced resistance in reclaiming key levels. On Tuesday, the cryptocurrency’s price dropped from the $2,600 zone to the $2,300 mark, displaying lower and higher support levels for the past few days.

News of multiple investors moving their tokens has emerged,引起不安. According to on-chain analytics firm Lookonchain, an Ethereum Initial Coin Offering (ICO) participant sold their tokens amid the market bleed.

The whale reportedly deposited 12,010 ETH ($31.6 million) into 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).

Highlighting the matter, crypto analyst Ali Martinez noted that around $259.2 million in ETH was sent to crypto exchanges on October 3. Based on the CryptoQuant data shared by Martinez, 108,000 ETH was sent to exchanges in the last 24 hours, showing a significant increase from the day before.

The news fueled bearish sentiment among many community members, who expressed disappointment about Ethereum’s performance and concerns about the possibility of significant selling pressure on ETH’s price.

Highlighting the matter, 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 “outperformed 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.”

Other market watchers pointed out that Ethereum needs to reclaim the $2,400 resistance level for a potential bounce toward $2,800. Previously, Daan Crypto Trades set the $2,850 resistance level as one of the key levels to watch.

According to the analyst, reclaiming this level would indicate 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.

At the time of writing, ETH is seeing a positive price pump, trading at $2,431. This performance marks a 4.3% surge in the daily timeframe.