Ethereum is down about 13% in October, a month that has historically been bullish for the asset. Some analysts see a further short-term decline, and outflows from spot ETH ETFs add to the concern.
ETH has plunged about 13% this month, even though September brought a gain of nearly 9% and expectations were that the positive streak would continue. Some analysts believe the asset could decline further in the short term.
October on track to break the pattern
Ethereum's average return for October is +4.14%, yet this month is on track to become one of the rare red exceptions. A negative close would end the winning streak and prevent four consecutive months of gains.
As of this writing, ETH trades around $2,330, down 4.3% in a week, according to CoinGecko data cited by CryptoPotato.
Analysts eye $2,000 and below
Analyst Alaoui Capital thinks ETH is approaching a make-or-break zone and risks dropping below the $2,000 psychological level into the $1,850-$1,920 support area.
Ted also expects a short-term decline, though a relatively modest one. He noted that ETH closed another weekly candle below $2,400, and failing to reclaim $2,350 soon could send it down to $2,200.
Spot ETF outflows and a high-profile sale
Institutional demand is another concern. Spot ETH ETFs have been bleeding lately, with an additional $220 million leaving the funds last week. CryptoPotato says this suggests pension funds, hedge funds, and other conservative investors keep reducing their exposure, and that a continued trend could make a recovery more difficult.
Meanwhile, Arthur Hayes, co-founder of BitMEX, recently sold over $15 million in ETH and trimmed his position in several other altcoins, including Ethena (ENA) and Uniswap (UNI). Earlier this year, he predicted Ethereum might hit $10,000 by the end of 2026.
Source: CryptoPotato
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