Ethereum is looking to find a low after a recent crypto market downturn.
ETHUSD – Daily Chart
ETHUSD has slumped from highs at $4,727 in early October to test $3,350 at the weekend. A strong bounce will be needed to get back above the $4,000 level.
Ethereum slid as Bitcoin’s weakness dragged the broader market lower over the last week. However, aggressive large-investor accumulation could suggest the weakness is only short-term. Data showed that whales accumulated 394,682 ETH, worth approximately $1.37 billion, during a two-day correction phase.
Ethereum’s on-chain activity has been a little subdued, as data show active addresses have declined by 24% since mid-August. That signals lower speculative participation, but transaction data remains active at a record 24,192 transactions per second (TPS), highlighting that the network is seeing growth in scalability.
“Ethereum traders have quickly pivoted from being extremely bearish to extreme bullish,” crypto data firm Santiment said on X.
But the analytics firm warned that overconfidence and emotional trading can often lead to temporary pullbacks. Once traders “slow their expectations of a quick return to $4,000,” that could mark the proper buy signal for Ethereum.
The futures market showed a change in the funding rate (which shows whether buyers or sellers are more aggressive), turning negative. This implies that traders expecting a downturn were paying traders who were betting on its recovery. This could suggest that too many people expect prices to keep falling, a sign that the market is close to turning around again.
