Ethereum (ETH) 
$2,451 The price entered a period of consolidation after the recent rises. The price declined below the $2,550 support level and is facing resistance near $2,500. However, there is potential for recovery if it passes this critical barrier. Analysts state that the current situation may herald a period of risky volatility and that “pump-and-dump” dynamics may be experienced due to the influence of venture capital.
Pump and Dump
A crypto analyst shared a controversial view on the long-term trajectory of Ethereum. The analyst’s tweet suggested that Ethereum’s significant growth could be attributed to a venture capital (VC) pump-and-dump scheme. This claim sparked debate about the stability and future of the network.
Crypto expert Beamish has issued a warning regarding Ethereum’s current market position. Beamish stated that there may be potential instability on Ethereum’s chart patterns. He said Ethereum is “on the verge of equilibrium,” noting that market factors such as the upcoming election add uncertainty.
Attention is also drawn to VC cash trading in a narrow range. Capital’s ability to gain profit from fluctuation by keeping the price in a narrow range is an obstacle to the rise. Essentially the same thing is about concentrated short-term investor capital. Traders who have been sitting on the bottoms and tops for months are actually enjoying the seemingly boring period because they sell at the top and buy at the bottom. In order to break this situation, new capital must flow rapidly and new investors must flock. Considering that a significant portion of ETF inflows are conversions from crypto to ETFs, it seems like the only solution.
November Predictions
At the time of writing, ETH price is hovering around $2,400 and has seen a decline in the last 24 hours due to BTC losses. Ethereum is positioned near critical resistance levels and has the potential for significant price movement. It is predicted that if it passes the $2,550 resistance, it can move towards $2,600. If it rises above $2,800, it would not be surprising if the price approaches $3,000. The US elections will largely be decisive here.
There is a risk of a decline if Ethereum price fails to surpass the $2,500 resistance for a long time. In case of a clear break below $2,400, selling pressure may increase and the price may decline to $2,350.
Ethereum’s short-term direction remains unclear. Resistance levels, VC speculations and market conditions shape the price outlook for this leading cryptocurrency.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
