ETH’s Road to $10K Runs Through an Inevitable $2K Drop: Analyst

After another correction on Friday morning, the cryptocurrency market started to rebound as the day progressed, led by BTC and ETH. The latter dipped to $3,200 but later jumped to almost $3,500 and is now 4.5% up on the day.

Despite these short-term fluctuations and ETH’s overall monthly decline, analysts remain optimistic about the asset’s long-term prospects. Ali Martinez, for example, noted that the largest altcoin can indeed break past $5,000 and skyrocket to the next major milestone of $10,000. To do so, though, it might need to plunge once again and clear out the weak hands.

https://twitter.com/ali_charts/status/1986948782970310657?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank

Fellow analyst CW noted that ETH is currently facing a significant sell wall at around $3,450, which is the first major obstacle on the road to recovery. If broken down, the asset might be on its way to $3,660, which is where the next sell wall is located. The one after that is at around $4,000, shows their chart.

https://twitter.com/CW8900/status/1987050049201971516?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank

What could spell some trouble for ETH’s upcoming price moves is the behavior of investors using the US-based spot ETFs. Data from FarSide shows that seven out of the last eight trading days have been deep in the red. In fact, the only green day was November 6, and it saw very modest net inflows of just $12.5 million.

In contrast, $219.4 million was pulled out on November 4, preceded by another $135.7 million on Monday. Overall, the net outflows for the week stand at $507.7 million.

What’s particularly worrying about this trend is that BlackRock’s ETF, which is the largest of the bunch, has seen the lion’s share of net outflows. They started on October 30 with $118 million taken out, followed by $38.6 million on October 31, $81.7 million on November 3, $111.1 million on November 4, and a whopping $146.6 million on November 5.

Nevertheless, ETHA investors changed their tune on November 6 with a modest $8 million in net inflows, followed by a more impressive $34.4 million on Friday. Fidelity’s FETH ended the business week with a substantial net outflow of $72.2 million, which only intensified the withdrawals from the previous days.

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