September was strong for the second-largest cryptocurrency, posting nearly a 9% gain, and overall expectations were that October would continue the positive streak.
However, this month (historically quite bullish) has so far disappointed, with ETH plunging about 13%. Some analysts believe the asset could decline further in the short term, and waning institutional interest appears to support that outlook.
Will the $2K Wall Hold?
Ethereum’s average return for October is +4.14%, yet this month is on track to become one of the rare red exceptions. If the period ultimately closes in negative territory, it would snap the asset’s winning streak and prevent it from recording four consecutive months of gains.
- ETH Monthly Gains, Source: CoinGlass
As of this writing, ETH trades around $2,330 (per CoinGecko), down 4.3% in a week. Analyst Alaoui Capital thinks the cryptocurrency is approaching “a make-or-break zone” and risks dropping below the $2,000 psychological level into the $1,850-$1,920 support area.
“If price sweeps into this zone and gets a strong rejection, we could see a relief bounce that catches the bears off guard. Everyone is looking at the downside, but what if ETH pulls a reversal right when nobody expects it,” the X user added.
Ted also envisioned a short-term decline, though relatively modest. He noted that ETH closed another weekly candle below $2,400, and failing to reclaim $2,350 “soon” could send it down to $2,200.
Diminishing institutional demand is another concern. Spot ETH ETFs have been bleeding lately, with an additional $220 million leaving the funds last week. This suggests pension funds, hedge funds, and other conservative investors keep reducing their exposure to the asset, forcing BlackRock, Grayscale, Fidelity, and other issuers to sell ETH to meet redemptions. If this trend continues, it could make a potential recovery more difficult for the cryptocurrency.
Meanwhile, Arthur Hayes (co-founder of BitMEX) recently sold over $15 million in ETH and trimmed his position in several other altcoins, including Ethena (ENA) and Uniswap (UNI). His decision is particularly interesting because earlier this year he predicted Ethereum might hit $10,000 by the end of 2026.
Still in Manipulation Zone?
Joep Gerla also commented, arguing that ETH might trade a bit more in the so-called manipulation area, where the price could experience a further decline. He then believes the cryptocurrency will move inside the distribution zone and could rally to as high as $3,600.
For their part, X user Wealthmanaged claimed that ETH is testing the bottom of a certain flag pattern and anticipates a massive bounce beyond $3,000 from here.
The post Ethereum (ETH) Suffers Its Worst October in 8 Years: Is More Pain Ahead? appeared first on CryptoPotato.
One analyst thinks ETH could reverse to the $1,850-$1,920 support area. Crypto Bits, Crypto News, Ethereum (ETH) Price
This articles is written by : Nermeen Nabil Khear Abdelmalak
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