In the wake of a significant price decline, Ethereum is drawing renewed attention with growing speculative interest. Fundstrat’s technical strategy director, Mark Newton, suggests that Ethereum might soon find its short-term bottom, with projections of a potential climb to $5,500. The pressures pushing prices downward appear to be lessening, indicating a possible shift in trend similar to the surge seen at September’s end. Tom Lee recently publicized Newton’s insights on his social media platform.
Is Ethereum’s Support Level Solid?
Earlier, Newton noted a robust technical uptrend in Ethereum from late September to early October, followed by a corrective three-wave movement. Although the altcoin dropped to $3,400, surpassing the anticipated support range of $4,200–$4,220, recovery chances remain, according to his analysis.
External economic factors have amplified market volatility. A major announcement by U.S. President Donald Trump on a 100% tariff on Chinese imports incited widespread selling across various markets, including stocks and cryptocurrencies, resulting in sharp declines. This decision led to significant market turmoil, evidenced by a $700 billion liquidation in the crypto sphere.
Does Blockchain Data Reveal Strategic Purchases?
Amid Ethereum’s price volatility, blockchain address activities have shed light on shifts in market strategies. Onchain Lens data indicates that three wallets tied to BitMine withdrew substantial amounts of Ethereum from Kraken, suggesting a strategic purchase of approximately $302 million despite the lack of formal confirmation. This indicates robust acquisition tactics amidst the dip.
Even as the market experiences drastic fluctuations, the prevailing “pullback to support followed by continued rise” scenario stays relevant this year. Fundstrat’s technical analysis proposes that Ethereum could hit a new peak near $5,500 if the current support holds firm. However, a persistently weak appetite for risk might slow the recovery pace and extend lateral price movements.
Concrete takeaways from the current situation include:
- Mark Newton anticipates a potential surge to $5,500.
- Ethereum breached its historical $4,200–$4,220 support range.
- Trump’s tariff announcement triggered significant market repercussions.
- BitMine’s withdrawal from Kraken underlines strategic acquisition conduct during price drops.
Market analysts continue to observe closely, balancing technical analysis with market volatility and macroeconomic influences to forecast Ethereum’s trajectory amidst these complex market conditions. As the crypto landscape evolves, stakeholders are strategically positioning themselves for possible gains and shifts in the near future.
