Ethereum (ETH), the world’s largest altcoin by market capitalization, is currently grappling with a bearish trend that has seen its price struggle to maintain levels above $2,600. Following a recent downturn in the broader cryptocurrency market, ETH has slipped another 5.5%, trading at approximately $2,509, with a market cap of around $302 billion. This decline has prompted concerns among analysts, particularly veteran trader Peter Brandt, who predicts a potential crash to as low as $1,550 amid diminishing buying interest.
Peter Brandt’s Warning – A Bearish Outlook
Peter Brandt, known for his expertise in technical analysis, has highlighted the absence of buy signals for Ethereum, underscoring a bearish chart structure. According to Brandt, ETH has yet to meet its downside target of $1,551, suggesting that the altcoin could experience further declines. The current price action indicates a downward trending channel characterized by lower highs and lower lows, which signals a persistent lack of bullish momentum.
Fellow crypto analyst Michael van de Poppe also shares a cautious outlook, indicating that if ETH continues its downward trajectory, it could see an additional decline of 10-20%. However, van de Poppe remains hopeful that market conditions might be nearing a reversal, particularly with upcoming U.S. unemployment data, which could significantly impact both Ethereum and broader market trends.
Approaching a Critical Demand Zone
As Ethereum’s price continues to navigate this turbulent market, analysts are closely monitoring a critical demand zone. Popular crypto analyst Mammon points out that ETH is nearing a crucial support level where bulls are expected to attempt to form a higher low, potentially stabilizing the price and supporting an ongoing bullish trend.
Mammon warns, however, that a close below approximately $2,460 could pose significant risks, especially given the liquidity accumulation below this mid-range level. Conversely, if Ethereum successfully establishes a higher low within this support zone and retests the volume area high (VAH), analysts see a strong potential for a breakout. A successful reclaim of this level could pave the way for a substantial price rally, with some bullish targets suggesting a long-term outlook of up to $18,000 for ETH.
ETF Inflows – A Mixed Bag
In a potentially encouraging sign for Ethereum, recent inflows into spot Ethereum ETFs have begun to pick up. Data from Farside Investors shows that, over the last three days, net inflows have returned to spot Ether ETFs, including a notable $50 million inflow into the BlackRock Ethereum ETF (ETHA) on October 31. However, not all ETF news is positive, as the Grayscale Ethereum ETF (ETHE) experienced outflows of $36.6 million, resulting in a net total inflow of just $13 million.
As the market continues to evolve, the interplay between bullish sentiments from institutional investments and bearish technical indicators will be crucial in determining Ethereum’s next moves. With critical data points on the horizon and traders closely watching for signs of reversal, the next few days could be pivotal for the altcoin’s trajectory.
Ethereum’s current position in the market is marked by uncertainty, with predictions ranging from potential crashes to new all-time highs. As analysts continue to evaluate key levels of support and market trends, the coming days will be essential for Ethereum’s investors and enthusiasts. Whether Ethereum can reverse its bearish trend and reclaim higher price levels remains to be seen, but the landscape is undoubtedly one to watch.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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