Ethereum experienced a significant decline in the recent market downturn, dropping closer to $4,000 after a 20% decrease from its Q3 peak of $4,900, with just one week remaining in the quarter. At the time of writing, Ethereum’s price was nearing $4,000 after reaching a peak of $4,900. The response of ETH at the $4,000 mark may shape its forthcoming path. A drop beneath this level might push the price down to $3,800 or even lower, whereas maintaining this position could trigger a rally. Analyst Michael van de Poppe suggested that the market may experience further sideways movement before any signs of recovery emerge, while expressing skepticism that ETH would decline to the $3,550 level.
He observed that the 20-week moving average was approaching the price. This suggested that compression was accumulating, signaling that a price movement was on the horizon. Additionally, he characterized the 20% dip as a crucial accumulation zone—an assertion that appeared to have the support of larger investors. Institutions persist in offloading their Ethereum assets, signaling leveraged long positions. Data revealed that Binance was one of the major players offloading Ethereum. Data indicates that market makers like Wintermute and Flow Traders have been acquiring millions of ETH from Binance. Additionally, BlackRock divested approximately $15.1 million in ETH. In the latest developments, total outflows from Ethereum ETFs exceeded $76 million within a 24-hour period, primarily driven by Fidelity and Bitwise, which accounted for a combined $55 million.
The observed alignment indicated significant repositioning by institutional players. Historically, comparable flush-outs have signaled reversal points as the year-end drew near. In the past day, a significant player initiated a long position of 237K ETH, valued at approximately $1 billion, on Kraken. Spot data underscored positive momentum. Ethereum’s trading volume reached $40.5 billion, outpacing Bitcoin by $7 billion.
Nonetheless, significant declines in the past have sparked subsequent rallies, with experts forecasting further fluctuations before a potential upswing. Lastly, the price action seemed to mirror patterns observed in 2017 and 2020. Throughout these years, Ethereum experienced growth in the second, third, and fourth quarters. Following a comparable trend, ETH may continue to see its gains as we move into the final quarter of the year.