The largest altcoin by market capitalization has plunged roughly 15% over the past month and currently trades just above $2,300.
The recent downturn has sparked pessimism, with some analysts warning that the asset could slide further to the key psychological level of $2,000. At the same time, certain factors suggest a resurgence may be just around the corner.
The Bearish Perspective
The popular analyst Ali Martinez noted that as ETH approached $2,400 on October 28, on-chain transaction volume surged past $100 billion. At that moment, the price was rejected and retreated toward $2,300.
He said whale activity may have affected Ethereum’s performance and cited Santiment data showing that large investors reduced their exposure by roughly 160,000 ETH, worth nearly $350 million, in just five days.
“This distribution could be contributing to the downward pressure on the price,” he stated.
Martinez pointed to a second bearish factor: more coins stored on exchanges. He said the figure has risen by 100,000 units (worth around $240 million) and that it “puts more ETH within reach of sellers, potentially adding to downward pressure.”
Last but not least, the analyst claimed that Ethereum’s technical picture is weakening. He noted that the asset has lost the $2,385 support and appears to have broken out of a right-angled ascending broadening formation on the daily chart.
“If selling pressure persists, the pattern points to a move to $2,000,” he concluded.
X user Ted also presented a rather pessimistic view. He said ETH failed to reclaim the $2,400 level and, as long as it stays below, “there’s a decent chance” of falling below $2,200.
Some Bullish Factors
Unlike the aforementioned whales that offloaded ETH, one large investor has made a huge bet that the asset’s price will rise. X user Max Crypto revealed that the mysterious market participant opened a $45 million long position with 25x leverage after the market headed south.
What’s particularly interesting is that the whale has made 20 trades so far and has a whopping 100% win rate. Some commenters think this isn’t a random investor but someone with inside information about events or developments that could trigger a price rally for ETH.
The asset’s Relative Strength Index (RSI) also flashes signs that a move back into green territory may be coming. The ratio has fallen to just above 30, meaning ETH is near oversold territory and could be gearing up for a short-term rebound. The index runs from 0 to 100, where anything above 70 signals a potential incoming pullback.
ETH RSI, Source: RSI Hunter
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