As Ethereum continues to trade below the critical $2,600 level, fears of a deeper downtrend persist. According to market analysts, ETH may descend as low as $1,550, though there remains potential for a rebound from key support levels.
Ethereum’s value, currently hovering around $2,509, has seen a 5.5% drop, placing its market cap at $302 billion. Legendary trader Peter Brandt has highlighted this decline, warning of a possible pullback to $1,550 due to weak demand. Brandt notes that Ethereum’s current chart structure fails to show strong bullish signals and suggests further risk of a downtrend.
Another prominent analyst, Michael van de Poppe, aligns with Brandt’s outlook, suggesting Ethereum could lose another 10-20% if its current downward trend holds.
Rebound Signals and Economic Influences
Van de Poppe also notes that there are early signs of potential recovery in the market. With expected shifts in U.S. Treasury bond yields, Ethereum might see a positive impact. He adds that upcoming U.S. unemployment data could significantly influence market sentiment.
Critical Demand Zones and the Potential for a Rally
Crypto analyst Mammon highlights Ethereum’s approach toward a crucial demand zone, emphasizing that the asset’s performance in this range will be key. Should ETH fall below $2,460, Mammon anticipates a drop in buyer interest. However, if the asset holds and tests a significant volume area, a rally to levels as high as $18,000 could be on the horizon.
Interest in spot Ethereum ETFs is also climbing, with recent net positive inflows. Notably, BlackRock’s Ethereum ETF recorded a $50 million inflow on October 31, while Grayscale’s Ethereum ETF observed a net gain of $13 million after a day of mixed inflows and outflows.
As Turkish NY Radio has previously reported, while Ethereum faces bearish risks, it also holds significant rally potential if support levels remain strong and ETF interest continues to build.
