Ethereum plummeted to $ 2870 in a flash

The price of Ethereum ETH $2,823.41 Bridged Ether (StarkGate) -2.24% Market capitalization $71.46 million VOL. 24 hours $2.46 billion on Wednesday, November 19, briefly fell to $ 2,870, the lowest level since July, after the publication of the US Federal Reserve meeting minutes, which increased market uncertainty. Despite the drop, analysts and online data suggest that a potential local bottom may be forming around $ 2,800.

Fed minutes showed that the majority of officials oppose a rate cut in December, while a minority allows for the possibility. This divergence caused a wave of volatility: Bitcoin fell to a seven-month low, and Ethereum dropped below $ 2,900. Subsequently, the ETH price partially recovered to $ 3,036, but the market remains volatile.

Online analysts have identified $ 2,800 as a key support level, which coincides with the selling price of coins in the portfolios of retail and large investors. Historically, such zones have often marked the low points of market cycles. At the same time, there is a split between retail investors and whale buyers who are actively accumulating ETH. A decrease in the number of forced liquidations of longs and an increase in open shorts creates the preconditions for a potential «short squeeze» — a sharp rise in price when demand recovers.

According to technical analysts, the current zone coincides with the average level between the peak of 2021 and the bottom of 2022. According to Meta Hughes, the current dynamics are «normal crypto market volatility» and can be seen as a bullish retest of support. Additional observations by Altcoin Vector show that ETH is repeating the liquidity pattern that previously accompanied the formation of local lows.

The combination of market factors, a decrease in stocks, the activity of large investors, and technical support at $ 2,800 creates conditions for a gradual recovery of ETH in the medium term. However, the further movement of the coin will largely depend on the Fed’s macroeconomic policy and sentiment in the global crypto market.