Ethereum showed strength and a seeming determination to go higher after the mega crash, but a fresh correction has reduced its gains.
All hope isn’t lost though, as an analyst on 14 October said the second largest crypto asset is still on track to hit $10,000 within this cycle.
Ethereum is currently trading below $4,000 and holding just above a critical price level that it cannot lose if a short-term rally will play out.
Ethereum at critical level
Following the flash crash the crypto market suffered over the last weekend, Ethereum recovered and was trading safely above $4,000 yesterday, raising hopes of a further upward movement.
With the correction which has reduced the gains, the asset pulled back to trade just above $3,900 at the time of filing this report.
While this may have dealt a serious blow to investors, this analyst says the coin is still in shape to hit at least $8,000 this cycle.
By comparing the 2018-2021 cycle to the 2022-2025 cycles, he sees a pattern that if repeated could cause Ethereum to skyrocket.
Meanwhile, some other analysts recently predicted that Ethereum must hold $3,800 to secure the assurance of an upward move.
Hopefully if this level remains intact, the hope of reaching the $10,000 may remain in play.
Whale dump creates panic
One of the reasons for the Ethereum crash could be a market dump by whales. Ethereum ETFs saw an outflow of over $420 million yesterday.
Out of this, BlackRock is said to have sold Ethereum worth $310 million, which could have created panic among retailers who would also sell out of fear.
Analysts believe such dumps are carefully calculated as part of an ongoing market manipulation against retailers, but hopefully Ethereum will hold strong and bounce back before long.
What do you think?
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