Ethereum Price Correction Alert. A Pullback or Downtrend?
- Ethereum (ETH) bounced back to $1,850 resistance on October 26.
- Alameda Research and FTX swiftly moved over $59M in cryptocurrencies, including ETH, for undisclosed reasons.
- Ethereum is currently trading at $1,793, marking a 0.89% decline over the past 24 hours.
Ethereum (ETH) continues to tread a delicate path, facing resistance as it attempts to break free from a descending trendline that’s been in place since April, when it reached its yearly high of $2,141. After dipping to a low of $1,536 on October 13, ETH made a rebound, surging to $1,851 by October 26, mirroring the movements of the leading cryptocurrency, Bitcoin.
In contrast to Ethereum’s struggle, Bitcoin (BTC) marked a significant rally on Wednesday, reaching a new 18-month high with a market share of $35,116. However, one disturbing news emerged in the crypto market. According to data from crypto data tracker Lookonchain, bankrupt crypto firms Alameda Research and FTX swiftly shifted over $59 million worth of assets, including Ethereum, leaving the reasons behind this transfer unclear.
FTX itself faced allegations of criminal mismanagement, leading to its bankruptcy in November, with nearly $9 billion in client funds unaccounted for. In response, FTX is now exploring a plan to repay its creditors by liquidating its assets, which include Ethereum, Solana, MATIC, and more.
Ethereum (ETH) Next Target
As for Ethereum’s price analysis in the last 24 hours, ETH embarked on a renewed attempt to breach the $1,820 level. It successfully cleared the $1,850 resistance but faced limitations in its upward trajectory. The price reached as high as $1,851 before undergoing a correction, the pattern observed in Bitcoin.
During this correction, ETH slipped below the $1,810 and $1,800 levels. Notably, a key bullish trendline was broken, with support near $1,810. Nevertheless, Ethereum found support at the $1,780 level, prompting a resurgence in buying interest.
At the time of this report, ETH is trading at $1,793, backed by a daily trading volume of $10.7 billion, a 15% surge within the last 24 hours.
For Ethereum, the path ahead is two-fold. If ETH clears the $1,850 resistance, it may set its sights on $1,870 and even test $1,900. Beyond that lies the pivotal resistance at $1,950, it could potentially accelerate towards $2,000. However, if Ethereum fails to overcome the $1,815 resistance, it could face another descent. The initial support on the downside rests near the $1,775 level.