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Ethereum (ETH) saw a 10.3% decline from last week’s highs following the recent market downturn. Its performance has many analysts and investors worried, given that ETH could be close to another correction.
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Ethereum whales send millions to exchanges
Ethereum has struggled to regain some key resistance levels since the October 1 correction. On Tuesday, the cryptocurrency saw its price drop from the $2,600 area to the $2,300 mark, oscillating between the lower and upper range of this support level over the past few days.
Since then, news of several investors moving their tokens has hit the industry, alarming the community. On-chain analytics firm Lookonchain has revealed that an Ethereum Initial Coin Offering (ICO) participant sold its tokens as the market bled.
According to the report, the whale deposited 12,010 ETH, worth $31.6 million, to Kraken a week ago after being inactive for two years. The same address sold another 19,000 ETH two days ago, worth around $47.54 million.
Today, crypto analyst Ali Martinez highlighted that on October 3, approximately $259.2 million worth of ETH was sent to crypto exchanges. According to CryptoQuant data shared by Martinez, 108,000 ETH was sent to exchanges in the last 24 hours, a significant increase from the previous day.
The news continued to fuel bearish sentiment among many in the community, who are disappointed with Ethereum’s performance and fear that the ETH price will soon face significant selling pressure.
Will ETH revisit lower levels soon?
Crypto investor Ted Pillows noted that ETH was “one of the most underperforming cryptos in 2024.” Despite the approval of Ethereum spot ETFs (exchange traded funds), the crypto has “underperformed almost all large caps.”
He also pointed out that ETH rose alongside Bitcoin whenever the market was up, but fell much more sharply when the market was struggling. “Every time BTC pumped 5%, ETH pumped 3%, but every time BTC dumped 5%, ETH dumped 12% to 15%,” he noted.
However, Ted explained that every time Ethereum was considered “dead”, such as in 2020-2021, it ultimately outperformed BTC. Based on this, the investor believes that “the king of Altcoins” could face “one last chase” to $2,200 before the reversal.
Likewise, trader Crypto General suggested that the cryptocurrency could retest $4,000 by next month as he expects ETH to rebound from current levels. However, he claimed that if the price breaks above the trendline, “we can easily see the price reaching the $2,100 level.”
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Other market watchers have pointed out that Ethereum needs to reclaim the $2,400 resistance level to see a potential rebound towards $2,800. Previously, Daan Crypto Trades identified the $2,850 resistance level as one of the key levels to watch.
The analyst considers that returning to this level would signal a trend reversal for the cryptocurrency. This zone corresponds to the horizontal level that began the February-March run to ETH’s yearly high of $4,090.
At the time of writing, ETH has seen a positive price rally, currently trading at $2,431. This performance represents an increase of 4.3% over daily time.
Featured image from Unsplash.com, chart from TradingView.com
