Ethereum has fallen roughly 15% over the past month and trades just above $2,300. Analyst Ali Martinez points to whale activity, rising exchange balances and a weakening chart as pressure that could take it to $2,000.
Ether plunged roughly 15% over the past month and now trades just above $2,300. Some analysts warn the asset could slide to the key psychological level of $2,000.
Ali Martinez noted that as ETH approached $2,400 on October 28, on-chain transaction volume surged past $100 billion. The price was then rejected and retreated toward $2,300.
Whales cut exposure and exchange balances rise
Martinez said whale activity may have affected Ethereum's performance. He cited Santiment data showing large investors reduced their exposure by roughly 160,000 ETH, worth nearly $350 million, in just five days.
According to Martinez: "This distribution could be contributing to the downward pressure on the price". He added that the amount of coins stored on exchanges has risen by 100,000 units, worth around $240 million.
Broken support points to $2,000
Martinez also claimed that Ethereum's technical picture is weakening. He noted that the asset lost the $2,385 support and appears to have broken out of a right-angled ascending broadening formation on the daily chart.
X user Ted took a similarly pessimistic view. He said ETH failed to reclaim the $2,400 level and that while it stays below, there is a decent chance of falling below $2,200.
Source: CryptoPotato
Trading involves risk.
Risk Disclaimer
