Ethereum Price Warning: 20% Drop

In recent days, the fluctuations in the price of Ethereum (ETH) continue to attract the attention of investors. Ethereum, which lost more than 20% of its value in just two days, has fallen to its lowest level since July, creating a concerning picture for investors.

Starting the week at around $4,000, Ethereum tested below $3,000 on Tuesday afternoon, experiencing a significant drop in a short time. Following these sharp price movements, according to CoinGlass data, approximately $970 million worth of leveraged Ethereum positions were liquidated in the last two days. The fact that most of these positions were long (bullish) trades, combined with the negative sentiment in the markets, has led to new liquidations.

Famous analyst Markus Thielen stated that Ethereum staying below $3,000 indicates an increase in downside potential. Thielen pointed out possible price movements, saying, “The price of Ethereum could decline to the $2,700-$2,800 range because no new buying crowd has formed in the markets.” This situation is supported not only by technical analyses but also by structural factors.

On the other hand, the loss of purchasing power by the corporate buyer named BitMine, with a portfolio of 3.4 million Ethereum, is increasing anxiety in the markets. It is estimated that the company has an average cost of $3,909 and has roughly $2 billion in unrealized losses at this level. The significant decrease in demand for Ethereum Exchange Traded Funds (ETFs) is another noteworthy factor. ETF inflows, which reached $9.5 billion in July and August, have almost come to a standstill after the crash in October. Approximately $850 million worth of fund outflows were recorded, and the interest of retail investors has visibly declined. According to Google search data, the search volume for the term “Ethereum” has dropped to only 13% of its peak period.

Considering all these developments, critical points for Ethereum investors are becoming clear. The $2,700-$2,800 levels stand out as important support levels that should be monitored if the downtrend continues. It has become essential for investors to adjust their positions and closely monitor the market to minimize potential risks.