Ethereum Price Falls 8% Amid Market Correction and Support Level Concerns
The price of Ethereum dropped by 8%, surpassing Bitcoin's decline. This decrease is part of a broader market correction, with ETH approaching critical support levels near $3,000.
October Events Trigger Corrections
- The Federal Reserve's October interest-rate cut led to uncertainty about future reductions, impacting speculative assets like cryptocurrencies.
- New tariffs on China announced by the US led investors to shift from cryptocurrencies to safer assets, contributing to Ethereum's price drop.
Technical Analysis on Ethereum
- The Birb Nest analysts highlighted that Ethereum broke below a crucial weekly support level. A breakdown under $3,337 could push prices to $2,800.
- A positive reversal requires ETH to reclaim $4,000 and close above it weekly.
- The ETH/BTC pair trades below its yearly open at 0.0355; reclaiming this is key for targeting 0.04.
- Analyst Ali Martinez warns of a potential drop to $2,400 or even $1,700 if ETH fails to reclaim $4,000.
Currently, ETH is trading at $3,100, which is 32% below its all-time high. A recovery before the weekly close is essential to re-test previous highs.