After the sharp decline Ethereum 
$3,836.17 is on the agenda again with the expectation of an increase. Director of technical strategy at Fundstrat Mark NewtonHe suggested that the search for a short-term bottom in the largest altcoin is nearing completion, after which the price could make a new rise up to $5,500. According to Newton, the downward pressure is now about to fade, and then the trend may turn upward with an acceleration similar to the rally at the end of September. Tom Lee follows the scenario put forward by Newton. X He highlighted it by sharing it on his account.
Bottom and Rally Scenario in Ethereum
Newton had previously stated that after the strong technical rise between September 25 and October 7, a three-wave limited correction was followed, and the $ 4,200-$4,220 band would serve as optimum support. Although the price, which fell to $ 3,400 in the last sales wave, fell below the predicted support, the recovery ground still exists, according to the analyst.
On the macro side, factors that increased volatility were decisive. US President on October 10–11 Donald Trump‘s announcement that a 100 percent customs duty would be applied to product imports from China as of November 1 triggered a wide sales wave ranging from stocks to cryptocurrencies. There were sharp losses on Wall Street and a jump in the VIX. Nearly 700 billion dollars were liquidated in the cryptocurrency market.
$302 Million Purchase Reflected in Blockchain Data
While sharp price movements continue in Ethereum, intra-Blockchain address movements reveal striking information about the change in risk appetite. According to Onchain Lens data, a total of 78,824 ETH worth approximately $302 million were withdrawn from Kraken from three wallet addresses associated with BitMine. There is no official confirmation yet regarding the purchase of ETH. Still, large-scale purchases indicate that the company is turning to savings during the sharp decline.
The rally recorded by the market throughout the year, despite the sharp breaks, keeps the “retreat to support – continuing the rise” narrative alive. The technical reading on Fundstrat is that if the support zone can be broken out, a new peak around $5,500 is possible. However, as the weak risk appetite continues, a delay in the recovery and a prolongation of the band movement are also on the table.
