Ethereum Collapsing As Whales Scramble For the Exit: Will ETH Break $2,000?

Ethereum is struggling for momentum, looking at the formation in the daily chart. After the close of the October 3 bar, it means ETH has posted four days of consecutive losses. Most importantly, from a technical perspective, the second most valuable coin couldn’t maintain prices above $2,400. For this reason, sellers may push the coin toward August 2024 lows of around $2,100. From the fundamental front, it doesn’t look positive. There is a wave of liquidation, especially from ICO participants, whales, Vitalik Buterin, and crypto market makers, including Wintermute.

At press time, ETH is down nearly 16% from September highs, and sellers dominate. Unless otherwise there is a refreshing bounce, slowing down sellers and forcing prices to consolidate horizontally, the path of least resistance will be southwards. As it is, Ethereum is stable in the past 24 hours, pushing weekly losses to nearly 11%. At the same time, engagement is average, at $17 billion in the past day.

Ethereum traders are closely monitoring the following developments:

• Yesterday, Wintermute, a top crypto market maker, sent 14,221 ETH to Binance. Usually, whenever an address moves coins to a crypto exchange, it is seen as bearish; explaining the concern among holders.  Over the past few days, whales have been moving ETH to exchanges and looking to liquidate.
• While some whales are selling, one withdrew 7,735 ETH worth over $18 million from Coinbase. The whale is known for accumulating the coin—injecting optimism among holders.

Ethereum Price Analysis

ETH/USD is in a difficult position, looking at the formation in the daily chart.

Sellers are dominant, breaking below the local support, which is now resistance, at $2,400.

With this trend emerging and ETH in a bearish formation from a top-down preview, sellers can consider shorts targeting $2,100.

This outlook will only change if Ethereum prices recover, reversing losses and even closing above $2,500 by the end of the day.

If not, ETH may fall and register fresh H2 2024 lows in the coming weeks.