Bitcoin fell below the crucial $100,000 level for the first time since June. Altcoins followed suit, with altcoin king Ethereum (ETH) dropping more than 20% on Tuesday, a two-day decline similar to the October 10 crash.
At this point, ETH had fallen to its lowest level since mid-July, dropping to about $3,000 by Tuesday afternoon US time.
This is the second major correction in a month, following a sharp and sudden drop on October 11, when ETH fell from just under $4,500 the previous day to $3,440, a 25% drop.
As expectations for Ethereum decline, 10x Research founder Markus Thielen said in a note that ETH’s collapse has left little support underneath, creating room for further decline.
Thielen also said that while Bitcoin remains the main focus of institutional investment, demand for Ethereum is declining and ETH is showing structural weaknesses.
At this point, Thielen cited treasury company Bitmine as an example, saying that the largest ETH treasury company, which has been steadily acquiring Etherem in recent months, is starting to run out of funds and appears to be completely exhausted.
“While there is no imminent risk of liquidation, the real concern is who will be next to buy more ETH now that Bitmine appears to have run out of firepower, as ETF inflows into Ethereum have also declined along with government bond purchases,” Thielen said.
Ethereum’s decline may continue!
Marcus Thielen said that not only institutional demand for Ethereum but also retail interest is decreasing, adding that all the catalysts that pushed ETH to near $5,000 in August have disappeared.
Thielen argued that if ETH price fails to maintain support around $3,000, it could experience a sharp decline and drop to $2,700-$2,800.
*This is not investment advice.
