One analyst thinks ETH could reverse to the $1,850-$1,920 support area.
ByDimitar Dzhondzhorov
September was strong for the second-largest cryptocurrency, posting nearly a 9% gain, and overall expectations were that October would continue the positive streak.
However, this month (historically quite bullish) has so far disappointed, with ETH plunging about 13%. Some analysts believe the asset could decline further in the short term, and waning institutional interest appears to support that outlook.
Will the $2K Wall Hold?
Ethereum’s average return for October is +4.14%, yet this month is on track to become one of the rare red exceptions. If the period ultimately closes in negative territory, it would snap the asset’s winning streak and prevent it from recording four consecutive months of gains.
As of this writing, ETH trades around $2,330
As of this writing, ETH trades around $2,330 (per CoinGecko), down 4.3% in a week. Analyst Alaoui Capital thinks the cryptocurrency is approaching “a make-or-break zone” and risks dropping below the $2,000 psychological level into the $1,850-$1,920 support area.
“If price sweeps into this zone and gets a strong rejection, we could see a relief bounce that catches the bears off guard. Everyone is looking at the downside, but what if ETH pulls a reversal right when nobody expects it,” the X user added.
Ted also envisioned a short-term decline, though relatively modest. He noted that ETH closed another weekly candle below $2,400, and failing to reclaim $2,350 “soon” could send it down to $2,200.
Diminishing institutional demand is another concern. Spot ETH ETFs have been bleeding lately, with an additional $220 million leavingthe funds last week. This suggests pension funds, hedge funds, and other conservative investors keep reducing their exposure to the asset, forcing BlackRock, Grayscale, Fidelity, and other issuers to sell ETH to meet redemptions. If this trend continues, it could make a potential recovery more difficult for the cryptocurrency.
Meanwhile, Arthur Hayes (co-founder of BitMEX) recently sold over $15 million in ETH and trimmed his position in several other altcoins, including Ethena (ENA) and Uniswap (UNI). His decision is particularly interesting because earlier this year he predicted Ethereum might hit $10,000 by the end of 2026.
