Ethereum Price Drop Under $2,300 Can Trigger 30% Crash

As the Bitcoin unwinding continues, the world's second-largest cryptocurrency Ethereum has been facing an even steeper correction dropping another 7% on the weekly charts.

Ethereum price continues to trade under pressure, dropping another 7% on the weekly charts. The second-largest cryptocurrency dropped to lows of $2,360 before recovering slightly. However, ETH price still remains above the crucial support that could lead to another 3x rally or a 30% crash.

Ethereum Price Drops Below $2,300, Where To Next?

Crypto analyst Ali Martinez recently highlighted some crucial levels for ETH price on his analysis. According to him, $2,300 is a crucial support as 2.77 million addresses collectively purchased 52.65 million ETH at a price ranging between $2,200 and $2,300.

If the bulls manage to defend this support and reverse the ETH trajectory, there’s the chance of another 3x rally from here, taking the price toward $6,000, before the next resistance at $7,000. However, if the ETH bears manage to break under the $2,300 level, it could lead to another 30% crash all the way to $1,600.

“If ETH can hold above $2,300, we may see a new rally that could push the price toward $6,000. But if it fails to do so and drops below $2,300, we could see another 30% crash taking the price toward $1,600,” Martinez noted.

ETH Price At Risk Of Rally To $3,000

On the other hand, following the Dencun upgrade, the Ethereum mainnet fee has touched an all-time low amid a surge in transactions on the Layer 2 platforms. According to the data from Glassnode, the average transaction fee on the Ethereum network dropped to 0.0008 ETH ($2.04) on October 7.

As a result of the lower fees, a large number of transactions are being processed on the Ethereum network, leading to a decrease in the ETH burn rate. With fewer fees burned, ETH has once again turned inflationary, reversing its current deflationary trend.

This puts Ethereum price at the risk of a rally to $3,000. On the other hand, the continuous sell-off from ETH whales has dampened the market sentiment recently.

ETH Whale Selloff Continues

As per the recent data from Spotonchain, an ETH whale from the ICO era, who initially received 150,000 ETH during the Ethereum ICO, has made another substantial deposit to Kraken. Just four hours before, the whale has transferred 5,000 ETH, worth $12.2 million, to the exchange.

The data also shows that over the past 15 days, this whale has deposited a total of 45,000 ETH ($113.3 million) to Kraken at an average price of $2,517. Following these significant transfers, the whale still holds 94,450 ETH, worth around $230 million.

ETH price shows a weak trend on the daily chart. The price dropped sharply last week and breached the crucial support of $2,500. The bears remained in control and pushed ETH price to lows of $2,360. However, the bulls quickly stepped in and bought the dip, leading to a recovery. At the time of writing, ETH price is trading 1.2% down at $2,432 levels with a market cap of $2,422 levels.

On the other hand, investors are losing interest in ETH as the sentiment turns bearish. According to the data from CoinShares, inflows into Ethereum ETFs have also slowed down significantly. On Monday, October 7, none of the spot Ethereum ETFs saw any inflows.

The above is the detailed content of Ethereum Price Drop Under $2,300 Can Trigger 30% Crash. For more information, please follow other related articles on the PHP Chinese website!