On Tuesday, the price of Ethereum fell by 8%, following the general correction in the cryptocurrency market and even surpassed the fall of Bitcoin (BTC). This has raised concerns as ETH approaches important support levels, putting its $3,000 mark in jeopardy.
October events lead to major corrections
Ram Ahluwalia, chief investment officer at Lumida Wealth, recently noted that the roots of this latest cryptocurrency sell-off date back to the October meeting of the Federal Reserve (Fed).
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On October 29, the central bank announced its second interest rate cut of the year. However, during the subsequent press conference, Federal Reserve Chairman Jerome Powell expressed uncertainty about the possibility of another taper in December.
According to Ahluwalia’s analysis, this has been detrimental to Bitcoin and the crypto market in general, as lower interest rates They typically bolster speculative assets like cryptocurrencies.
Adding to Ethereum’s current price correction, in mid-October US President Donald Trump announced new tariffs on China due to its restrictions on rare earth exports. This announcement caused a flight of investors from cryptocurrencies towards safer assets such as gold.
Ethereum price under pressure
From a technical perspective, analysts at The Birb Nest have highlighted key levels to watch. On the social media platform X (formerly Twitter), noted that Ethereum price broke below a critical weekly support level, which they interpret as a major deviation until price action proves otherwise.
They highlighted that a drop below the altcoin’s yearly open of $3,337 could take the price of Ethereum to $2,800. For a positive reversal, they believe ETH must retake $4,000 and close above this level on a weekly basis.
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Furthermore, the ETH/BTC The pair is under scrutiny, with prices trading below the yearly open at 0.0355. To target an increase towards 0.04, recovering this level is essential. Until then, analysts are watching for possible retests around 0.0325-0.03.
However, some experts, such as Alí Martínez, warn against overly optimistic projections. He warns of the worst-case scenario where Ethereum price fails to regain the $4,000 mark and potentially falls to $2,400 or even $1,700.
A drop of this magnitude would mean an additional 45% rise for ETH, which could also lead to a deeper correction in the broader altcoin market.
At the time of writing, ETH is trading at $3,100. This represents a significant 32% gap between current trading prices and all-time highs, which could not be retested before the end of the year unless a fresh recovery occurs before the weekly close.
Featured image of DALL-E, chart from TradingView.com
