Ethereum (ETH) price has plummeted over the past two days, dropping 12%, erasing gains from the past two weeks. As of October 4, ETH was trading at $2,373, down from nearly $2,700 a few days earlier.
This sudden bearish turn has investors and analysts questioning whether Ethereum can regain momentum and rally above the key resistance near $2,800. The second-largest cryptocurrency by market capitalization is currently underperforming the broader crypto market, which has seen a 1.4% increase in market capitalization since September 1.
Multiple factors contributing to Ethereum’s decline
Several factors appear to be contributing to Ethereum’s recent struggles.
Disappointing ETF performance: The much-anticipated Ether ETF, which launched in the U.S. in July, has recorded net outflows of $552 million since its inception, indicating weaker-than-expected investor demand. It shows. Selling pressure from early investors: On-chain analysis shows that some early Ethereum ICO participants are selling significant holdings, including one company that sold 31,000 ETH in the past month is shown. Network upgrades impacting tokenomics: Recent changes aimed at reducing layer 2 costs have turned Ethereum’s issuance rate positive, contrary to expectations that it would be deflationary. Roadmap Complicated Concerns: Ethereum co-founder Vitalik Buterin recently proposed further technical adjustments, further strengthening the already complex network upgrade path.
Network activity remains strong despite falling prices
Despite these headwinds, Ethereum network activity remains strong. Blockchain continues to lead the way in decentralized application (DApp) usage, with weekly trading volume reaching $26.2 billion and active addresses and transaction activity increasing across major protocols such as Uniswap, Balancer, and Curve.
Key Ethereum metrics include:
27% increase in active addresses in the past week 41% increase in trading volume 33% increase in Uniswap trading volume 122% increase in Balancer trading volume reaching $5.4 billion in 7 days
ETH price prediction: important support levels in the eyes of analysts
Looking ahead, analysts suggest that Ethereum needs to regain the $2,300 support level to avoid further losses. Some market observers have warned that below this threshold, ETH testing could see an annual low near $2,150.
Renowned analyst Karl Runeveld shared on social media that if Ethereum fails to maintain support at the current trend line, the next target could be $2,150. This potential decline will upset many investors who were hoping for continued bullishness in the coming weeks.
