- Ethereum faces a potential $3,400 sweep unless resistance at $3,900 is reclaimed.
- Recent 4% price drop triggered over $400 million in liquidations.
- Whale accumulation and Fusaka upgrade fuel rebound optimism amidst market volatility.
Ethereum (ETH) is navigating a critical phase in its market cycle, according to a detailed analysis by crypto analyst @IamCryptoWolf. The latest chart, shared on November 3, suggests that ETH is entering the final stage of a correction that began in August, tracing back to its $1,500 levels.
The analyst’s base case highlights a potential sweep of the $3,400 support level unless ETH reclaims the $3,900 resistance. This comes amid a 4% price drop below $3,600 on November 3, triggering over $400 million in liquidations and sparking heated debates among traders.
Liquidations Signal Market Pressure but Also Opportunity
The chart, created with TradingView, outlines a descending trendline and key support zones, with ETH currently testing a critical juncture. The analyst warns of a possible dip to the low $3,400s, aligning with broader market volatility and election-related uncertainty.
However, a rebound to $4,200 or higher remains in play if the $3,400 floor holds, supported by whale accumulation and the anticipated Fusaka upgrade. Technical indicators like RSI(14) oversold conditions and OBV flips could signal a reversal if momentum shifts.
Traders are divided, with some viewing the dip as a buying opportunity and others bracing for further declines toward $3,200. The broader crypto market, including Bitcoin’s struggle below $109,000, adds pressure, but ETH’s fundamentals suggest resilience. As the year-end approaches, a potential rally to new highs remains on the table, contingent on key support levels holding firm.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
