Ethereum (ETH) has seen its price decline by approximately 12.73% in October, falling from $2,648 to $2,311. Over a 24-hour period, Ethereum reserves increased by 186,000 ETH, indicating rising selling pressure and mixed market sentiment.
Despite the positive news surrounding Franklin Templeton’s proposed Bitcoin and Ethereum index ETFs, both Ethereum (ETH) and Bitcoin (BTC) are facing price declines. Historically, October has often been a bullish month for cryptocurrencies, dubbed “Uptober,” but this year market sentiment remains cautious as both major cryptocurrencies struggle to gain upward momentum.
Currently, ETH is trading near $2,383, having previously dipped to $2,311. Since the beginning of October, it has lost about 12.73%, dropping from a high of $2,648. While ETH is still above the critical support level of $2,300, a break below this could potentially drive the price towards the $2,100 range, or even below $2,000.
Investor sentiment has become more cautious, reflected by the increase in Ethereum exchange reserves. Data from CryptoQuant shows an increase of over 186,000 ETH in exchange reserves within just 24 hours, suggesting increased selling pressure.
Currently, the Ethereum price is down by approximately 0.33% on the day. Over the past 24 hours, ETH has seen liquidations totaling over $44.89 million, with long positions amounting to $34.93 million and short positions accounting for $9.96 million.
Additionally, Ethereum ETFs experienced a net outflow of $3.20 million on Thursday. Although BlackRock’s ETHA recorded an inflow of $12.08 million, it was offset by a $14.69 million outflow from Grayscale’s ETHE. Historically, Ethereum ETFs have not performed as well as their Bitcoin counterparts.
Is Ethereum’s Price Decline Suggesting Bearish Trends?
- Despite initial optimism for October, Ethereum started the month on a weaker note, falling below the $2,350 support level. It also slipped under its 50-day and 200-day moving averages, which could indicate emerging bearish trends. The next significant support level is at $2,280, and a breach at this point could result in further declines towards $2,200.
- The Stochastic RSI for Ethereum indicates an overbought condition, with increasing selling pressure while the Relative Strength Index (RSI) stands at 33. This suggests a possible reversal as it nears oversold levels. However, if ETH manages to recover above the $2,550 level, it could negate the current bearish outlook.
