Ethereum (ETH) experienced a modest decline of 1% on Friday, briefly dipping below the $2,400 mark as rising oil prices exerted pressure on risk assets across the board. Brent Crude surged by 3.6%, reaching $109.7, marking its highest level since May, while the crypto market itself saw a decline of 1.3% in tandem with the S&P 500, which fell 1.4% and neared its lowest close since mid-September.
Amid this backdrop, Ethereum has faced significant selling pressure, with approximately $72 million liquidated from the market recently. Long traders have collectively lost around $500 million since the beginning of the week, contributing to a sense of bearish sentiment in the market.
Exchange reserves have also seen a notable uptick, with around 290,000 ETH added over the past three weeks, the highest accumulation since early September. This increase in reserves suggests a growing supply of Ethereum available for sale, adding to the downward pressure on prices.
On Thursday, US spot ETH ETFs recorded $60.2 million in net outflows, marking a concerning trend of withdrawals on 12 of the last 13 trading days. This continued outflow could indicate that investor sentiment remains shaky, despite the potential for recovery.
Market analysts are closely monitoring price movements, particularly those of Ted Pillows, who has highlighted that Ethereum’s recent bounce from the $2,350 support zone indicates potential upward momentum. Pillows noted that if ETH closes above $2,550 on a weekly basis, it would suggest that the bottom has been reached, paving the way for further gains.
Chart analysis reveals that Ethereum is currently positioned below the 50-day exponential moving average (EMA) at $2,492, while the 20-day EMA is at $2,538. The price sits above the 100-day EMA of $2,347.87, which serves as tentative support. Traders are particularly focused on whether ETH can maintain its position above the critical support level of $2,355.
In the broader context, Raoul Pal, CEO of Real Vision, has weighed in on Ethereum’s valuation, asserting that the cryptocurrency is significantly undervalued. Pal pointed out that Ethereum underpins a staggering 70-76% of stablecoins, decentralized finance (DeFi), and many real-world asset transactions on-chain. He believes that as the demand for programmable blockchain infrastructure grows, Ethereum’s value will inevitably reflect its critical role in the evolving financial landscape.
Pal further emphasized the potential consequences of an Ethereum outage, estimating it could erase between $1 trillion to $1.5 trillion in value. This stark warning underscores the importance of Ethereum’s stability and its foundational role in the crypto ecosystem.
As of October 17, Ethereum was trading at Rp43,406,277, down 1.51%, with buy interest at a robust 74%. Traders remain vigilant as market dynamics evolve, with eyes firmly set on the $2,550 resistance level that could signal a resurgence for ETH in the coming days.
