Is Ethereum Doomed to Plunge to $3,500 After Latest $4K Rejection?

TL;DR

• Ethereum’s inability to decisively reclaim the crucial $4,000 resistance could result in a more painful price drop to and even below $3,500, said Ali Martinez.
• In contrast, other analysts remain optimistic about its future trajectory, outlining that Q4 and Q1 are just around the corner, periods that have been historically very bullish for ETH and other alts.

Another $4K Rejection?

Recall that the second-largest cryptocurrency stood tall above $4,700 just a couple of weeks ago. Although it started to slip in the following days, it still maintained the $4,500 level by last Monday when all hell broke loose. In the span of just an hour or so, ETH slumped by over $400 and dumped beneath $4,100.

Following an unsuccessful recovery attempt that was quickly halted at $4,200, Ethereum dumped once again. This time, it was even more violent as the asset plummeted to a multi-month low of $3,830 (on Bitstamp).

The bulls finally reminded of their presence at this point and didn’t allow a further breakdown. However, they seem to be lacking a lot of strength, as ETH has been unable to decisively overcome the critical resistance at $4,000.

If the asset indeed fails to break past this level in the following few days, the danger of a price drop to $3,500 becomes even more likely, according to Martinez.

The analyst also outlined the following support lines if $3,500 falls, which are set at $3,020 and $2,772. Crypto Rover warned that whales have been selling substantial portions of their ETH holdings, which could result in another price slip.

Uptober to Save ETH?

While the analysts above painted a grim picture for ETH’s future, Michael van de Poppe stood in the opposite corner. He relied on historical performance to demonstrate that Ethereum tends to rocket at the end of each year and the beginning of the next.

The data shared by him shows that ETH tends to perform well in most previous Octobers, including a 42.8% surge in 2021 and an 18.5% pump in 2022.