Ethereum is experiencing a downturn, reflecting a broader trend in the cryptocurrency market. Current data indicates a nearly 2% decrease in market performance, driven by declines in Bitcoin and several major altcoins. As a result, the total market capitalization of cryptocurrencies has fallen to approximately $2.11 trillion, according to CoinMarketCap data, raising concerns about further losses if bearish pressure continues, potentially undoing the gains made in September.
In the past week, Ethereum has seen a significant drop of around 10%, with prices falling below the crucial $2,400 level, which previously served as a support level but has now become a point of resistance. While this sharp decline may discourage some traders, data shows a notable accumulation of ETH around the current market prices. Specifically, 1.89 million Ethereum addresses have collectively purchased around 52 million ETH in the price range of $2,311 to $2,383, with many buyers averaging their purchases at approximately $2,350. This suggests that the $2,350 level may act as a significant support point that traders should monitor closely.
For Ethereum to maintain stability, sellers will need to exert considerable effort to push prices below this support level. Any break below $2,350 could lead to a downward movement towards $2,100 and August’s lows. Analysis suggests that when considering Fibonacci retracement levels, the $2,350 level aligns with key technical zones where price stability is often found.
Looking ahead, the price action within the range of $2,100 to $2,350 will likely dictate Ethereum ’s medium to long-term outlook. A rebound from this emerging support could pave the way for a potential rally above $2,800, with bulls setting their sights on $3,500. Conversely, a severe drop below the recent low levels could prompt panic selling, with prices possibly plunging below $2,100 and approaching $1,800, marking significant losses since August. Recent trading patterns indicate that sellers currently hold the advantage, as evidenced by substantial outflows from centralized exchanges.
