Key Insights:
- Ethereum price slips 12% today but held above the key support level of $3,800.
- An Ethereum whale has offloaded more than 14K ETH recently.
- Market pundits hint at a ETH price crash to $3,700 as the bears continue to dominate the broader crypto market.
Ethereum price has once again moved into the negative territory, as the global crypto market cap bleeds 10% to $3.7 trillion at the time of writing. A flurry of factors might have weighed on the investors’ sentiment, which has triggered the recent selloff in the market.
Amid this, market pundits have hinted at a further crash in the ETH price, potentially dragging its price to $3,700. Notably, from whale selling to macroeconomic concerns, it appears that current market trends have turned investors cautious, which has impacted the broader market sentiment.
So, here we explore the potential factors that might have caused the dip in Ethereum price and what analysts are predicting for the future trajectory of the crypto.
Ethereum Price Slips As Crypto Market Bleeds
ETH price today fell more than 12% and exchanged hands at $3,823, and its trading volume rocketed 200% to $120 billion. Notably, the crypto has hovered between the 24-hour high and low of $4,411 and $4,273.
The recent dip has wiped out its recent gains, as evidenced by a decline of 15% in the weekly chart. Over the last 30 days, the Ethereum price has fallen more than 13%.
Notably, the retreat in the asset’s price comes amid a broader crypto market slump. Most of the top altcoins followed suit, with Bitcoin price falling below $110k, indicating the cautious stance of the investors.
However, some have still remained optimistic, given the “Uptober” sentiment hovering in the market. Historically, ETH price, as well as the broader crypto market, has provided positive returns in October and through the final quarter of the year.
Besides, despite the recent pullback, CoinGlass data showed that Ethereum Futures Open Interest stayed in the green. Besides, the Relative Strength Index was also at 44, nearing the oversold condition, which suggests a potential recovery ahead.
Why Is Ethereum Price Falling Today?
A flurry of factors might have contributed to the recent losses in Ethereum price. One of the main factors behind the gloomy momentum could be the $5.6 billion in Bitcoin, Ethereum, and XRP options expiring today.
According to the latest data, 215K ETH options with a notional value of nearly $1 billion are set to expire on Friday. These options’ expiry often triggers massive volatility in the market and impacts the assets’ value.
On the other hand, the latest comment from Fed Chair Jerome Powell has also spooked crypto market investors. During his latest speech, Powell didn’t mention anything about the Fed rate cut plan, which has left investors concerned and caused a broader market jitter.
Simultaneously, the fading institutional interest has also fueled concerns among traders. According to Farside Investors’ data, the US Spot Ethereum ETF has recorded an outflow of $8.7 million on October 9, breaking its 8-day inflow streak.
Besides, Lookonchain reported that Ethereum whale “0x882E” has deposited another 14,275 ETH, valued at $62.5 million, to Binance recently. Since March 20, the whale has offloaded 23,365 ETH, worth $97.6 million, to book a profit of $156 million.
Analysts Predict ETH Price Crash to $4,700
As Ethereum price continues to bleed, analysts have further fueled concerns, warning of a further dip in the asset’s value. In a previous X post, analyst Ali Martinez warned that the current selling pressure may drag the ETH price to $4,100.
In addition, the expert noted that if the bears continue to dominate, the crypto may witness a further dip to $3,700 in the near future.
Echoing a similar sentiment, market expert Ash Crypto said that Ethereum price may touch a low of $3,800 this month, fueling investors’ concern. However, he noted that the major support lies at $4,240, which would decide the future trajectory of the asset.
If ETH price could hold this support, it may target the key resistance at $5,000 next. Simultaneously, Ash Crypto also said that Ethereum price may hit a high of $6,000 this month.
Considering all these factors, it appears that a rebound in the institutional interest and macro factors could help in a strong recovery. Besides, if Ash Crypto’s analysis comes into play, the crypto may rally to as high as $6k this month.