Alarm Bells Ring for Ethereum (ETH)! "All Bullish Catalysts Have Disappeared, Decline Could Continue to These Levels!"
Bitcoin dropped below $100,000 for the first time since June, and Ethereum (ETH) experienced a significant decline, falling over 20% in two days and reaching its lowest level since mid-July at around $3,000. Markus Thielen, founder of 10x Research, highlighted Ethereum’s structural weaknesses and diminishing institutional and retail demand. Treasury firm BitMine, a major Ethereum buyer, is running out of resources, further reducing market support for ETH. Without strong support at $3,000, ETH’s price may drop further to $2,700-2,800. Institutional investments and retail interest in Ethereum continue to wane, raising concerns about future price stability.
Layer-1
Bitcoin and Ethereum Experience Significant Declines
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, marking a two-day decline similar to the October 10 crash. By Tuesday afternoon (US hours), Ethereum had dropped to around $3,000, its lowest level since mid-July.
Ethereum's Recent Corrections
This marks ETH's second significant correction within a month. On October 11th, Ethereum experienced a major, sudden drop to $3,440, a 25% decline from just below $4,500 the day prior. These repeated declines highlight Ethereum's increasing volatility in recent weeks.
Institutional and Structural Weaknesses in Ethereum
As expectations for Ethereum decline, Markus Thielen, founder of 10x Research, wrote in a note that ETH's collapse has left little support beneath it, increasing the likelihood of further downward movement. Thielen stated that while Bitcoin continues to dominate institutional investments, demand for Ethereum is falling, exposing structural weaknesses in the cryptocurrency.
The Role of BitMine in Ethereum's Decline
Thielen cited BitMine, the largest ETH treasury firm, as an example. BitMine, which has been steadily acquiring Ethereum in recent months, is reportedly running out of cash and appears to be completely exhausted. Thielen noted, “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.”
Potential Continuation of Ethereum's Decline
Thielen warned that institutional demand and retail interest in Ethereum have diminished, with all the factors that pushed ETH to nearly $5,000 in August now absent. He argued that if ETH fails to hold the $3,000 support level, it could experience a sharp decline, potentially dropping to $2,700-2,800.