Ethereum is experiencing a decline at the time of writing, reflecting the overall trend seen in the market. The nearly 2% fall in the cryptocurrency sector is largely attributed to declines in Bitcoin, Ethereum, and leading altcoins. Currently, the total market capitalization has dropped to $2.17 trillion. Further losses may occur if bearish sentiment continues, undoing September’s gains.
Ethereum Facing Struggles: Will $2,350 Provide Support?
According to data from CoinMarketCap, Ethereum has decreased by 10% in the last week, pushing prices below $2,400, which was previously a support level but has now turned into resistance. Although the significant drop this week may dissuade some traders, others see it as an opportunity to accumulate at current levels.
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Data from IntoTheBlock indicates that on October 3, 1.89 million Ethereum addresses purchased 52 million ETH within the price range of $2,311 to $2,383. The fact that a substantial number of buyers chose to acquire Ethereum at an average price of $2,350 suggests that this level could serve as a support point that traders should monitor closely.
Given the extent of ETH accumulation, sellers would face a tougher challenge in pushing below this level, which could drive the coin down to $2,100 and the lows from August. When compared to trading activities and the price range from September, the $2,350 mark aligns closely with the 61.8% and 78.6% Fibonacci retracement levels.
What’s Next for ETH?
From a technical standpoint, cryptocurrencies, including ETH, usually find support in this Fibonacci retracement zone. Therefore, how prices behave within the $2,100 to $2,350 range is likely to influence the medium- to long-term trend.
Related Reading: What’s Restraining Bitcoin? Analyst Points Out That $71,000 Is the Key Figure
A positive recovery around this developing support level and Fibonacci zone would be a significant advantage. In such a scenario, ETH could surge, perhaps exceeding $2,800 as bullish traders set their sights on $3,500.
On the flip side, a significant drop below the lows of August and September could easily instigate panic selling. This might lead to ETH prices falling below $2,100 and potentially down to $2,000 or even $1,800, confirming the losses experienced in early August.
Given the current price dynamics, sellers appear to hold the advantage. During recent trading sessions, centralized exchanges have recorded substantial outflows.
Earlier today, The Data Nerd reported that Wintermute, a cryptocurrency market maker, transferred 14,221 ETH to Binance, suggesting potential selling activity. During August, Wintermute and other prominent market makers, including Jump Capital, sold over 130,000 ETH, resulting in lower prices.
Feature image from DALLE, chart from TradingView
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