Crypto
Ethereum Recovery in Doubt? Analyst Warns of a Possible 10% Drop
Ethereum has given back almost all of its weekly gains after failing at $2,550. Spot ETFs posted a rare green day, but the charts still favor sellers.
BLOCKINSIDERLoadingEthereum has given back almost all of its weekly gains after failing at $2,550. Spot ETFs posted a rare green day, but the charts still favor sellers.
Ethereum is back where it started the week. ETH pushed toward $2,550 earlier this week, then sellers stepped in hard, and the token has now given back almost all of its weekly gains.
It trades near $2,397, down 4.58% over the past 24 hours, and one analyst thinks the next few days will decide whether this pullback turns into something bigger.
Crypto analyst Ted flagged the rejection in a post on X. “$ETH tapped the $2,530-$2,550 resistance zone and got rejected,” he wrote. “It’s now back at the $2,400 level and has almost erased all its weekly gains.”
His warning centers on the weekly candle. “If a weekly close happens below $2,400 for Ethereum, it could drop another 7%-10%,” Ted added.
The $2,400 mark has acted as a major point for Ethereum in recent sessions. Buyers defended it on the way up, and the rally into $2,550 started from there.
Losing it on a weekly closing basis would tell traders that the breakout attempt failed and that sellers have taken back the higher time frame.
The ETF data had one green day this week. US spot Ethereum ETFs recorded $14.96 million in net inflows on October 21, according to SoSoValue. It was only the second day of positive flows this month, after a $24.84 million inflow on October 13.
The funds lost $103.28 million on October 19 and another $26.13 million on October 20, leaving the current week at $114.46 million in net outflows.
The week before saw $319.97 million leave the products, and the week ending October 9 was the worst of the month at $542.07 million in outflows.
Across October, the daily data adds up to roughly $1.07 billion in net outflows, with October 6 alone accounting for $201.89 million. Cumulative net inflows since launch have dropped from $13.84 billion at the start of the month to $12.83 billion.
On the 1-hour chart, ETH has a bearish short-term structure. Price topped at $2,526.62 and has since printed a series of lower highs and lower lows. The token is now testing the $2,390 to $2,400 area.
The RSI readings sit at roughly 24.85, 28.47 and 37.98. The two shorter-period readings are in oversold territory, which leaves room for a relief bounce.
Immediate support sits at $2,380, followed by $2,350 and $2,318. On the upside, ETH faces resistance at $2,400 to $2,420, then $2,450 to $2,480. The major ceiling remains the $2,500 to $2,526 zone where the latest rally stalled.
The bearish case starts with a sustained break below $2,380. If that level gives way, ETH could slide toward $2,350 and possibly $2,318.
A weekly close under $2,400 would line up with Ted’s warning, and a 7% to 10% drop from that level would put Ethereum somewhere between $2,160 and $2,230.
A neutral path is also possible. ETH could chop between $2,380 and $2,420 for a few sessions while the oversold readings cool off and sellers lose steam.
For a recovery, bulls need to reclaim $2,420 first and then push through the $2,450 to $2,480 zone.
For now, the weekly close is the level to watch. If ETH holds $2,400 and ETF flows keep turning positive, the recovery story stays alive. If it doesn’t, Ted’s 10% drop scenario could happen.
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