As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market corrections and bull runs. The recent drop in Ethereum (ETH) has raised some eyebrows, but let’s not jump to conclusions just yet.
Over the past few days, Ethereum (ETH) has experienced a 10.3% decline since reaching its peak last week, causing concern among financial analysts and investors alike. This dip in value has led some to speculate that another correction may be imminent for ETH.
Ethereum Whales Send Millions To Exchanges
Since the adjustment in October 1, Ethereum has found it challenging to surpass some significant resistance points. On Tuesday, its value plunged from around $2,600 to approximately $2,300, and it’s been fluctuating between these two price points, or the lower and upper bounds of that support level, for a few days now.
Following this event, reports about various investors transferring their tokens have sparked concern within the community. According to on-chain analysis firm Lookonchain, a participant in an Ethereum Initial Coin Offering (ICO) has offloaded their tokens amidst market decline.
According to the latest findings, a whale transferred approximately 12,010 Ethereum (ETH), equivalent to about $31.6 million, to Kraken last week. This was after the same account had been inactive for a period of two years. More recently, the same address offloaded another 19,000 ETH, which is roughly $47.54 million.
Today, cryptocurrency analyst Ali Martinez brought attention to a notable event: around $259.2 million of Ethereum was transferred to digital exchange platforms on October 3rd. As per data from CryptoQuant, which Martinez shared, approximately 108,000 ETH were moved to exchanges within the past 24 hours, representing a substantial increase compared to the previous day.
The ongoing news has been stoking a pessimistic outlook among numerous community members, as they are disheartened by Ethereum’s recent performance and worry that the value of ETH may be subject to intense selling pressure in the near future.
Will ETH Revisit Lower Levels Soon?
2024 saw Ethereum, according to investor Ted Pillows, significantly lag behind other popular cryptocurrencies. Even with the acceptance of Ethereum spot ETFs, it has struggled to keep pace with most large-cap digital assets.
He additionally highlighted that ETH tends to rise in tandem with Bitcoin during market uptrends, yet falls more sharply when the market is down. In his words, “When Bitcoin rises by 5%, Ethereum follows suit with a 3% increase, but when Bitcoin declines by 5%, Ethereum plummets between 12% and 15%.
Nevertheless, Ted clarified that each instance when Ethereum was deemed “defunct,” such as during 2020-2021, it ultimately surpassed Bitcoin. Consequently, this investor anticipates that Ethereum, often referred to as the “King of Altcoins,” may experience a final decline to $2,200 prior to a turnaround.
In a similar vein, Crypto General proposes that the cryptocurrency might revisit around $4,000 by the end of next month, given his belief in Ethereum recovering from its current position. Yet, he cautions that should the price surpass the trendline, there’s a strong possibility it could reach as low as $2,100.
Analysts in the market believe that Ethereum needs to surpass the $2,400 barrier again for a possible rise towards $2,800. Earlier, Daan Crypto Trades highlighted $2,850 as an important level to keep an eye on.
The analyst believes reaching this point again could indicate a change in trend direction for the cryptocurrency, as it aligns with the flat line that initiated the February-March climb towards Ethereum’s annual peak of $4,090.
Currently, Ether (ETH) is experiencing an upward price movement, with its value standing at approximately $2,431. In the past day, this increase translates to a notable 4.3% growth.
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2024-10-05 14:46