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The largest altcoin, Ethereum (ETH), has been subject to a brutal correction, touching the lows of $3,000 in today’s crypto market crash. However, the worst might not be over as market analysts predict an Ethereum price crash to $7,000 in a worst-case scenario. Furthermore, institutions like BlackRock have been offloading in big numbers amid an overall bearish sentiment in the market.
Ethereum Price Eyes One Final Support Before Further Drop
Crypto analyst Ted Pillows noted that Ethereum (ETH) briefly approached the $3,000 mark before rebounding. According to Pillows, the critical resistance range for ETH lies between $3,500 and $3,600. Failure to reclaim this zone could trigger another downtrend, with the next major support expected around the $2,800 level.
On the other hand, the ETH derivatives data is also showing signs of weakness in the futures market. Ethereum’s (ETH) total open interest declined by 8% over the past 24 hours, falling to $39 billion.
Binance remains the leading exchange by open interest, followed by Bybit and OKX with $2.21 billion. The sharp decline raises questions among traders about whether the move signals a short-term cooldown before a rebound or the beginning of a deeper market correction.
The Worst-Case Scenario for Ethereum Price
Crypto analyst Ali Martinez cautioned that Ethereum (ETH) could face a significant decline if it fails to reclaim the $4,000 level. Martinez outlined a worst-case scenario in which ETH breaks below its $3,800 support. This can potentially trigger a deeper correction toward $2,400 or even $1,700.
On the other hand, institutional players have also been selling ETH big time. During the past five trading sessions, outflows from spot Ethereum ETFs across all US issuers have been on the rise.
On Tuesday, November 4, the total outflows across all US ETF issuers surged to $219 million. BlackRock’s Ethereum ETF (ETHA) reported net outflows of 34,777 ETH, valued at approximately $121.48 million. Despite the withdrawals, trading activity remained strong, with total volume reaching $3 billion, as per data from Farside Investors.
This clearly shows that the institutional sentiment surrounding the second-largest altcoins is slowing down. On the other hand, the ETH treasury firms are also showing signs of nervousness and have slowed down further accumulation in recent weeks.
Trump Insider Whale Goes Long on ETH
According to data from Crypto Nobler, a crypto whale reportedly linked to the Trump family has opened $100 million worth of long positions in Bitcoin (BTC) and Ethereum (ETH) ahead of a major announcement expected from Donald Trump today.
On-chain data shows the same wallet previously shorted the market before the recent flash crash, securing an estimated $90 million in profits. The timing of the new positions has sparked speculation about possible insider knowledge.
Crypto analyst CrediBULL Crypto said Ethereum (ETH) failed to retest its recent highs, which could have presented a strong short opportunity. However, he noted that the current breakdown is a positive sign, suggesting that the next push toward the highs could mark the start of a larger impulsive move.
According to the analyst, ETH’s downside target below $2,800 appears to be approaching sooner than expected. This will potentially allow the market to end the correction faster. He added that this zone could offer the best buying opportunity since $1,500.
