Ethereum (ETH) has seen a 10.3% drop from last week’s highs following the recent market crash. Its performance has worried many analysts and investors, considering that ETH could be close to another correction.
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Ethereum whales send millions to exchanges
Ethereum has struggled to reclaim some key resistance levels since October 1. correction. On Tuesday, the cryptocurrency’s price plummeted from the $2,600 zone to the $2,300 mark, oscillating between the lower and upper range of that support level for the past few days.
Since then, news of multiple investors moving their tokens has hit the industry, alarming the community. On-chain analytics firm Lookonchain revealed that an Ethereum Initial Coin Offering (ICO) participant sold his tokens as the market bled.
According to the report, the whale He deposited 12,010 ETH, worth $31.6 million, on 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.
Today, cryptanalyst Ali Martinez highlighted That as of October 3, approximately $259.2 million worth of ETH had been sent to crypto exchanges. According to CryptoQuant data shared by Martínez, 108,000 ETH were sent to exchanges in the last 24 hours, a significant increase from the previous day.
The news continued to fuel bearish sentiment among many community members, who are disappointed by Ethereum’s performance and fear that the ETH price could soon face significant selling pressure.
Will ETH hit lower levels again soon?
Crypto Investor Ted Pillows noted that ETH has been “one of the lowest performing cryptocurrencies in 2024.” Despite the approval of Ethereum spot ETFs (exchange-traded funds), the cryptocurrency has “underperformed almost all large caps.”
He also noted that ETH rose alongside Bitcoin every time the market rose, but fell significantly more when the market ran into trouble. “Every time BTC has pumped 5%, ETH has pumped 3%, but every time BTC has pumped 5%, ETH has pumped 12%-15%,” he commented.
However, Ted explained that every time Ethereum was considered “dead”, such as in 2020-2021, it eventually surpassed BTC. Based on this, the investor believes that “the king of Altcoins” could face “one last rise” to $2,200 before the reversal.
Likewise, Crypto General trader suggested that the cryptocurrency could retest $4,000 next month as it expects ETH to rebound from current levels. However, he stated that if the price breaks the trend line, “we can easily see the price touching the $2,100 level.”
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Other market watchers noted that Ethereum must reclaim the $2,400 resistance level to see a potential rebound towards $2,800. Previously, Daan Crypto Trades set the $2,850 resistance level as one of the key levels to take into account.
The analyst considers that recovering this level would indicate a change in trend for the cryptocurrency. This zone corresponds to the horizontal level that began the February-March run to ETH’s annual high of $4,090.
At the time of writing, ETH has seen a positive price jump, currently trading at $2,431. This performance represents an increase of 4.3% in the daily period.
Featured image from Unsplash.com, chart from TradingView.com
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