Ethereum Under Pressure, Will $2,350 Offer Support?

In the last week alone, CoinMarketCap data shows that Ethereum is down 10%, pushing losses below $2,400, a former support, now resistance.

Crypto prices continue to slide, with a nearly 2% drop across the board. Bitcoin, Ethereum, and top altcoins show a collective decline, leading to a total market cap decrease to $2.17 trillion.

If the bearish pressure continues, the market may erase gains seen in September.

Ethereum Feels The Heat, Will $2,350 Serve As Support?

CoinMarketCap data over the last week shows that Ethereum is down 10%, pushing losses below $2,400, a former support level, now resistance. This sharp dump throughout the week may seem to discourage participation, but some traders are accumulating at around spot rates.

IntoTheBlock data from October 3rd shows that 1.89 million Ethereum addresses bought 52 million ETH at around the $2,311 and $2,383 range.

A large amount of buyers choose to buy, on average, at $2,350, indicating this is a support level that traders should keep an eye on.

Considering the number of ETH accumulated, sellers would need to exert more effort to break below this level, forcing the coin towards $2,100 and August lows.

Comparing traders’ action and the September range, the $2,350 level falls at around 61.8% and 78.6% Fibonacci retracement levels.

Where To Next For ETH?

Typically, crypto prices, including ETH, tend to find support around this Fibonacci retracement zone.

Hence, how prices react between the $2,100 and $2,350 zone will likely set the medium to long-term trend.

A refreshing bounce around this emerging support and Fibonacci retracement zone would be a massive boost. In this case, ETH could rally, even above $2,800, as bulls target $3,500.

On the other hand, any sharp dump below August and September lows may easily trigger panic selling. Out of this, ETH can slump below $2,100 and $2,000 and may fall to as low as $1,800, confirming losses of early August.

Considering the state of price action, sellers have the upper hand. Over the past few trading sessions, centralized exchanges have had massive outflows.

Earlier today, The Data Nerd revealed that Wintermute, a crypto market maker, moved 14,221 ETH to Binance, indicating that they might sell. In August, Wintermute and other leading market makers, including Jump Capital, sold over 130,000 ETH, forcing prices lower.