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Ethereum (ETH) saw a 10.3% decline from last week’s highs following the recent market pullback. Its performance has worried many analysts and investors, considering that ETH may be close to another correction.
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Ethereum whales are sending millions to exchanges
Ethereum has struggled to regain some key resistance levels since the October 1st correction. On Tuesday, the cryptocurrency saw a sharp drop in its price from the $2,600 area to the $2,300 mark, and has been hovering between the lower and upper range of this support level for the past few days.
Since then, news of several investors transferring their tokens has hit the industry, worrying the community. On-chain analytics firm Lookonchain revealed that one of the Ethereum Initial Coin Offering (ICO) participants sold their tokens as the market bled.
According to the report, the whale deposited 12,010 Ethereum, worth $31.6 million, into Kraken a week ago after remaining inactive for two years. The same address sold another 19,000 Ethereum two days ago, or about $47.54 million.
Today is cryptocurrency analyst Ali Martinez Highlight On October 3, approximately $259.2 million worth of ETH was sent to cryptocurrency exchanges. According to CryptoQuant data shared by Martinez, 108,000 ETH were sent to exchanges in the past 24 hours, which is significantly more than the previous day.
The news continues to fuel bearish sentiment among many in the community, who are disappointed with Ethereum’s performance and fear that the Ethereum price will face significant selling pressure soon.
Will ETH return to lower levels soon?
Cryptocurrency investor Ted Bellows male That ETH was “one of the lowest performing cryptocurrencies in 2024.” Despite the approval of spot ETFs (exchange-traded funds), cryptocurrencies “underperformed almost every cap value.”
He also noted that ETH rose alongside Bitcoin whenever the market rose but fell more when the market ran into difficulties. “Whenever BTC pumped 5%, ETH pumped 3%, but when BTC dumped 5%, ETH dumped 12% to 15%,” he noted.
However, Ted explained that every time Ethereum is considered “dead,” such as in 2020-2021, it eventually outperforms Bitcoin. Accordingly, the investor believes that the “altcoin king” may face a “final run” to $2,200 before a reversal.
Likewise, the general crypto trader Suggested The cryptocurrency could retest $4,000 by next month as ETH is expected to rebound from current levels. However, he stressed that if the price breaks the trend line, “we could easily see the price touch 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 bounce toward $2,800. Previously, Daan Crypto Trades identified the $2,850 resistance level as one of the key levels to watch.
The analyst believes that restoring this level would indicate a reversal in the trend of the cryptocurrency. This area corresponds to the horizontal level that started the period from February to March leading to ETH’s yearly high of $4,090.
As of this writing, ETH has seen a positive price jump, currently trading at $2,431. This performance represents an increase of 4.3% on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com