Amidst a sharp price drop, Ethereum 
$2,302 is once again in focus with rising expectations. Mark Newton, the technical strategy director at Fundstrat, suggests that the search for a short-term bottom in the largest altcoin is nearing completion. Newton predicts a potential rise to $5,500. According to him, the downward pressure is easing, and the trend could soon shift upward, much like the rally observed at the end of September. Tom Lee highlighted Newton’s scenario through his social media account.
Bottom and Rally Scenario in Ethereum
Newton previously indicated that the strong technical uptrend between September 25 and October 7 was followed by a three-wave limited correction. The $4,200–$4,220 range was expected to serve as optimal support. Despite the recent price drop to $3,400 breaching the projected support, the analyst believes that recovery potential still exists.
External macro factors have played a decisive role in increasing volatility. A significant announcement from U.S. President Donald Trump on October 10-11 regarding a 100% tariff on products imported from China starting November 1 triggered a broad wave of sales, spanning from stocks to cryptocurrencies. This announcement resulted in sharp losses on Wall Street and a spike in the VIX. In the cryptocurrency market, approximately $700 billion was liquidated.
$302 Million Purchase Reflected in Blockchain Data
While Ethereum continues to experience notable price movements, blockchain address activities reveal significant insights into the change in risk appetite. Onchain Lens data shows that three wallet addresses associated with BitMine withdrew a total of 78,824 ETH worth approximately $302 million from Kraken. Although no official confirmation of the Ethereum purchase exists yet, the large-scale acquisitions during the sharp drop indicate the company’s accumulation strategy.
Despite the market’s sharp fluctuations, the rally observed throughout the year keeps the “pullback to support – continuation of the rise” narrative alive. Technical analysis by Fundstrat suggests that if the support area is breached, a new peak around $5,500 is possible. However, the continuation of weak risk appetite might delay the recovery and prolong the sideways movement.
