Ethereum’s recent sell-off has weighed heavily on sentiment after the the price dropped below $2,000 rate and pulled a large portion of the altcoin market down alongside it. Movement caused a lot of fear and caution among Ethereum traders. However, some analysts are of the opinion that the bullish upside will soon enter.
In a post shared on X, crypto analyst ChainHub said that the current conditions are very much pointing to weakness, and after a big drop it appears from the top.
Related Reading
ETHBTC Structure Holds
ChainHub emphasized that The ETH/BTC pair is still technically active and has yet to see a structural failure despite the recent price drop. Although the price of Ethereum it went down much more than many expected during a crash, it will not continue to fall forever. He pointed again fear levels are rising now extremes that are rarely observed, we note that such areas are often seen near major transition points. “After a big scare and a big drop it comes from the top,” said the analyst.
In Ethereum itself, ChainHub admitted that the loss of the $2,000 handle was significant, but highlighted the next major area of interest near $1,700. This sinner technically corresponds to a a broad correction structure, and it is possible that Ethereum may not fall that far before it bounces back. However, even if Ethereum falls to $1,700, the price action reaching this area means that Ethereum is finally at a point where buyers may start to take back control.
He related this idea to the recent behavior of Bitcoin. Bitcoin’s rejection at $72,000 opened the door to a reassessment of the upper half of its demand range for the summer of 2024, from $59,000 down to $49,000.
ChainHub reported that this is the first significant interaction with that demand area since 2025, with the Fibonacci retracement covering $57,000 to $58,000. This increases the likelihood that Bitcoin is on the way to forming a base, and this is where it establishes a low.
Altcoins Affect Levels of Reasonable Demand
ChainHub also noted that Ethereum it is not alone in assessing critical levels. Several major altcoins, including Solana and XRP, are moving into key demand areas. Many of these altcoins revisited the August 2024 lows or filled previous wicks, areas that had not been breached in the first attempt.
For example, Solana, broke under $100 for the first time since January 2024 and recently sold for as low as $75. As noted by ChainHub, this move saw Solana finally touch significant demand for the first time in 2 years.
Related Reading
Dogecoin, Cardano, and Avalanche and all fill the weeks low on October 10, restores the balance and touches the August 2024 low. Although there is still a possibility of a moderate decline, the expectation is that the market will begin to form a range and begin building bullish momentum in the coming weeks.
Featured image from Unsplash, chart from TradingView
