Amid the ongoing crypto consolidation, Ethereum price has established a support level around $2,300 but low demand from institutional investors could weigh down on bullish sentiment.
Ethereum ETH $4 253 24h volatility: 3.0% Market cap: $513.28 B Vol. 24h: $51.81 B price rebounded 1.4 percent in the past 24 hours from a crucial support level of around $2,332 to trade at about $2,411 on Friday, October 11 during the mid-London session. The top-tier altcoin, with a fully diluted valuation of about $290 billion and a daily average traded volume of around $13.2 billion, rebounded from the lower border of a logarithmic triangular pattern in the daily time frame.
If the bullish sentiment persists over the weekend, Ethereum price is likely to rally towards $2,598, which coincides with the 0.618 daily Fibonacci Extension. However, unless Ethereum price consistently closes above the crucial resistance of around $2,800 in the coming weeks, the possibility of further correction cannot be overlooked.
According to market data analysis provided by IntoTheBlock, Ethereum’s price has already established a robust support level of around $2,300, where 2.4 million addresses purchased 52.6 million Ether. As a result, if Ethereum’s price breaches the $2.3k support level, the entire altcoin ecosystem could be facing a major sell-off as investors look to minimize losses.
In the daily time frame, the bearish sentiment has the upper hand, with the ultimate target of $2,100, which represents a 12 percent drop from the current level. With Bitcoin price also showing midterm weaknesses, Ethereum price is likely to drop further to flash out leveraged traders before rebounding towards a new all-time high.
Against the Bitcoin pair, Ethereum has been forming a potential reversal pattern, characterized by a double bottom and a bullish divergence on the Relative Strength Index (RSI).
Ethereum Whales Panic Sells
As Coinspeaker previously pointed out, the US spot Ethereum ETFs have suffered low demand from institutional investors since inception. As of this report, the US spot Ether ETFs have registered a net cash outflow of over $560 million, led by Grayscale’s ETHE.
Meanwhile, on-chain data shows that crypto whales have been offloading their holdings led by the Chinese government that intends to sell over $1.3 billion in the near term. The Ethereum Foundation and Vitalik Buterin have been selling their coins every week since the beginning of the year.
Closer Look at Fundamental Aspects of Ether Network
The Ethereum ecosystem has significantly matured over the years due to the mainstream adoption of its smart contracts by both retail traders and institutional investors. The notable Ethereum network upgrades in the past have helped Ether compete with other layer one (L1) projects led by Solana SOL $207.7 24h volatility: 6.1% Market cap: $113.35 B Vol. 24h: $12.00 B .
For instance, the introduction of Ethereum staking through the Beacon chain has resulted in more than 34.7 million Ether staked, representing around 28.8 percent of the total circulating supply. The introduction of the burn feature on the Ethereum network over three years ago has resulted in more than 4.4 million Ether obliterated to date.
The Ethereum network has grown to a web3 powerhouse with over $44 billion in Total Value Locked (TVL) and over $84 billion in the stablecoins market cap. Some of the top projects on the Ethereum network include OpenSea NFT marketplace, Uniswap UNI $6.99 24h volatility: 5.4% Market cap: $4.19 B Vol. 24h: $391.59 M , and Tether USDT USDT $1.00 24h volatility: 0.0% Market cap: $179.97 B Vol. 24h: $166.36 B .
next