• If ETH bulls manage to recover from $2,300, it could result in 3x gains all the way to $6,000.

  • ICO-era Ethereum whales deposited 45,000 ETH ($113.3 million) into Kraken in the past 15 days.

  • As Ethereum faces weak market sentiment, investors are shifting their attention to other Layer-1 blockchains such as Sui, Solana, and Avalanche.

As Bitcoin liquidation continues, Ethereum, the world’s second-largest cryptocurrency, is facing a steeper correction, falling another 7% on the weekly chart. Ethereum price is trading closer to the critical support level of $2,300 while ETH whale selling continues this week.

Ethereum Price Drop Below $2,300 Could Trigger 30% Crash

Popular cryptocurrency analyst Ali Martinez recently reported that $2,300 is a critical support for ETH price as 2.77 million addresses have collectively purchased 52.65 million ETH. He said that if bulls manage to defend this support and reverse ETH’s trajectory, then another 3x rally is possible from here. However, if ETH bears succeed in breaking the $2,300 level, it could lead to another 30% plunge to $1,600.

“If Ethereum can hold above $2,300, we could see a new rally that could push prices up to $6,000,” Martinez noted. Therefore, this is make or break for the price of Ethereum, which could be a determining factor in its future trajectory. At press time, ETH price is down 1.2% to $2,432, with a market cap of $2,422.

On the other hand, after the Dencun upgrade, Ethereum mainnet fees hit an all-time low amid a surge in Layer2 platform transactions. As a result, as the burned fees decrease, ETH turns to inflation again, reversing the current deflationary trend. This puts the Ethereum price at risk of a rebound to $3,000. On the other hand, the continued selling of ETH whales has recently suppressed market sentiment.

ETH Whale Selling Continues

According to the latest data from Spotonchain, an ETH whale from the ICO era who originally received 150,000 ETH during the Ethereum ICO has made another large deposit to Kraken. Just four hours ago, the whale had transferred 5,000 ETH worth $12.2 million to the exchange.

The data also shows that over the past 15 days, the whale has deposited a total of 45,000 ETH ($113.3 million) to Kraken at an average price of $2,517. After these major transfers, the whale still holds 94,450 ETH, worth about $230 million. Therefore, this continued selling by ETH whales indicates that

As sentiment around ETH wanes, investors are moving funds to Ethereum competitors such as Sui (SUI), Solana (SOL), and Avalanche (AVAX) in current market conditions.

On the other hand, inflows into Ethereum ETFs have also slowed significantly. On Monday, October 7, none of the spot Ethereum ETFs saw any inflows.



It should be emphasized that this article is for reference only and does not constitute investment advice.

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