What will Ethereum do in Uptober? ETH has recently faced a notable decline. After reaching highs last week, it dropped by 10.3%, prompting concern among investors and analysts. Many are now questioning whether ETH is nearing another correction.
Whale Activity Raises Concerns
Since the correction on October 1, Ethereum has struggled to break through key resistance levels. Just days ago, it plummeted from around $2,600 to the $2,300 range, fluctuating between these support levels.
In light of this downturn, alarming news surfaced regarding the movement of ETH tokens. An on-chain analytics firm, Lookonchain, reported that an investor from a past Ethereum Initial Coin Offering (ICO) has begun selling their holdings. This revelation added to the anxiety within the community.
Notably, a whale transferred 12,010 ETH, valued at $31.6 million, to Kraken after a two-year period of inactivity. Furthermore, this address sold an additional 19,000 ETH just two days ago, amounting to roughly $47.54 million.
It seems that Ethereum holders don’t care about Uptober.
On October 3, crypto analyst Ali Martinez noted that around $259.2 million worth of ETH was sent to crypto exchanges. According to data from CryptoQuant, the 24-hour period saw a significant increase, with 108,000 ETH moving to exchanges, up dramatically from the previous day.
This influx of ETH to exchanges has intensified bearish sentiment among community members. Many are feeling disheartened by Ethereum’s recent performance and are concerned about potential selling pressure.
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Will ETH See Lower Levels Again?
It certainly feels that Ethereum has been “one of the most underperforming cryptos in 2024.” Despite the favorable news surrounding the approval of Ethereum spot ETFs, the cryptocurrency has lagged behind other large-cap assets.
In past bull markets, ETH typically rises with Bitcoin during market rallies but falls more sharply when the market declines.
“The king of Altcoins” may experience one final decline to $2,200 before rebounding. It would make sense to test that last low one last time, especially now that we are so close to that range.
However, if ETH manages to reclaim the $2,400 resistance level it could trigger a potential bounce toward $2,800. Analyst Daan Crypto Trades has identified $2,850 as a crucial resistance point to monitor. He believes that if Ethereum can reclaim this level, it would signal a trend reversal for the cryptocurrency.
This price level aligns with the horizontal support that initiated the February-March rally, which propelled ETH to its yearly high of $4,090.
Current Price Movement
As of now, ETH is showing a positive uptick, trading at approximately $2,418 This reflects a 4.3% increase over the past day, providing a glimmer of hope for traders.
In summary, the price action of Ethereum has led to a mix of optimism and caution. While significant whale movements have created bearish sentiments, some analysts predict a potential turnaround.
Investors remain attentive to key resistance levels, particularly $2,400 and $2,850, as well as the support level at $2,200. Only time will reveal if Ethereum can navigate through this turbulence and find a new upward trajectory. Stay tuned for further updates on Ethereum’s price action.
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