Alarm Bells Ring for Ethereum (ETH)! "All Bullish Catalysts Have Disappeared, Decline Could Continue to These Levels!"

Bitcoin fell below its critical $100,000 level for the first time since June. Altcoins followed suit, with altcoin king Ethereum ($ETH) falling more than 20% on Tuesday, a two-day decline similar to the October 10 crash.

At this point, $ETH had fallen to its lowest level since mid-July, falling to around $3,000 by Tuesday afternoon US hours.

This is $ETH's second significant correction in a month, following a major and sudden drop on October 11th that took $ETH to $3,440, a 25% drop from just below $4,500 the day before.

As expectations for Ethereum decline, 10x Research founder Markus Thielen wrote in a note that $ETH's collapse has left little support beneath it, creating more room for decline.

Thielen also said that while Bitcoin remains the main focus of institutional investments, demand for Ethereum is declining and $ETH exhibits structural weaknesses.

At this point, Thielen cited treasury firm BitMine as an example, saying that BitMine, the largest $ETH treasury firm that has been steadily acquiring Etheruem in recent months, is starting to run out of cash and appears to be completely exhausted.

“While there is no immediate risk of liquidation, the real concern is who will be the next incremental buyer of $ETH now that BitMine appears to have run out of firepower, as ETF inflows into Ethereum have also decreased alongside treasury purchases,” Thielen said.

Ethereum's decline may continue!

Markus Thielen stated that institutional demand as well as retail interest in Etheruem has diminished, adding that all the catalysts that propelled $ETH to nearly $5,000 in August have disappeared.

Thielen argued that if the $ETH price fails to hold the support around $3,000, it could experience a sharp decline, potentially dropping to $2,700-2,800.

*This is not investment advice.