Bitcoin experienced a noticeable downtrend upon the opening of the US market, with its value descending to $76,400. This decline was accompanied by a significant drop in altcoin prices, exceeding 5% in losses and posing a threat to Ethereum’s stability above the $2,000 threshold. Historical patterns might offer some clues about the future trajectory of the cryptocurrency market.
How Did October’s Market Crisis Impact Cryptocurrencies?
The events of October 10 marked a significant disruption in the cryptocurrency landscape. The day noted billion-dollar losses and a staggering $2.5 billion liquidation within 24 hours. Such substantial erasure of long positions dried up liquidity, exemplifying the weakened state of buyers who appeared too restrained to initiate short liquidations, signifying a market under immense stress.
Swissblock has identified a shift in market momentum, suggesting a possible concession by investors. The setback resulted in extreme negative momentum and highlighted the inability of buyers to replace market leadership, a first of its kind.
Momentum levels, historically resting at +0.5 and -0.5, often denote significant structural changes. Mid-January’s attempt at a bullish transformation was halted by successful defensive actions from sellers, reversing back to negative momentum, thus maintaining a bearish market outlook.
Is Ethereum at Risk of a Further Decline?
Ethereum, which saw a brief rally in 2025, stands at the crossroads of shedding its $2,000 value. Despite Bitcoin’s perceived affordability, buyer hesitation led to a drop under $77,000. DaanCrypto cautions that if Ethereum slips from its established range, it might revert to levels previously witnessed before the significant breakdown, with companies like BitMine poised to provide support.
Although recent cycles presented poor price movements, DaanCrypto emphasizes the clarity of the marked levels. The range from $2,100 to $2,800 is distinctly notable, concentrating on its significance without unnecessary complications.
Falling below this range may see Ethereum look towards $1,800, identified as the critical level before the past major rally spearheaded by entities such as Tom Lee and BitMine.
As of this writing, ETH’s position hovers perilously close to the lower boundary of this range, being only $100 above, signaling a fragile state for the cryptocurrency.
“The levels are distinctly clear and important, concentrating purely on their significance without unnecessary complications.” – DaanCrypto
