Ethereum, also known as ETH, has been experiencing significant price fluctuations in recent days. According to information from a cryptocurrency analyst named Ali, the price of Ethereum currently hovers just above a key demand zone. If Ethereum loses support in this area, whose lower boundary is around $1,530, it might lead to a strong correction. Unfortunately, the exact consequences of such a move are currently hard to predict.
On October 8th, the value of Ethereum dropped to $1,548. This was partly due to investors taking profits. Despite attempts to rebound, Ethereum hasn’t managed to recover the previous days’ losses. Data from IntoTheBlock indicates that Ethereum is currently above the demand zone with a lower support level at $1,533. In this region, as the source mentions, 2.39 million ETH were purchased by almost 1.83 million addresses.
If Ethereum loses this support, the price might drop to around $1,485. What’s worse, there’s limited support in this range, which could lead to further declines, even down to the $1,342 level. Ethereum’s price increase is facing strong resistance, evidenced by the purchase of 10.92 million ETH by 4.38 million addresses in the price range of $1,585 to $1,633.
Derivative market data suggests that the Ethereum market doesn’t have a clear direction. According to the research firm Kaiko, open interest in ETH has increased since the beginning of September. This indicates a lack of a clear market movement direction. Furthermore, from the information shared by Ali, it appears that Ethereum whales, the biggest holders, have started selling their holdings. Since February 2023, approximately 5 million ETH, valued close to $8.5 billion, has been sold or transferred.
Ethereum currently faces a pivotal challenge. Its future in the coming days and weeks will depend on its behavior at critical support levels. Investors and observers are holding their breath, watching the next moves of this significant cryptocurrency.
Photo by Yiğit Ali Atasoy on Unsplash
