13% Plunge in October Causes ETH to Suffer Worst Month in 8 Years

The cryptocurrency is experiencing its most difficult October in eight years, despite September showing strength with nearly a 9% increase, leading to expectations that October would maintain that upward trajectory. However, this month, which typically exhibits bullish characteristics, has disappointed thus far, with ETH dropping approximately 13%.

Analyst Alaoui Capital suggests the cryptocurrency is nearing what they term a "make-or-break zone," warning of a potential drop below the $2,000 psychological threshold and into the $1,850-$1,920 support area. The X user added that if the price enters this area and encounters a strong rejection, a "relief bounce that catches the bears off guard" might occur, noting that while many are anticipating a downturn, a reversal could happen unexpectedly.

Another analyst, Ted, also foresees a short-term dip, though he anticipates it will not be substantial. He observed that ETH concluded another weekly candle below $2,400, and if it fails to regain $2,350 "soon," it could fall to $2,200.

A contributing factor to market concerns is the decreasing demand from institutional investors; spot ETH ETFs have recently seen outflows, with an additional $220 million leaving the funds in the previous week. This trend indicates that conservative investors, such as pension funds and hedge funds, are continually lessening their involvement with the asset, compelling issuers like BlackRock, Grayscale, and Fidelity to sell ETH to satisfy redemptions. Should this pattern persist, a future recovery for the cryptocurrency could become more challenging.

Arthur Hayes, who is a co-founder of BitMEX, recently offloaded more than $15 million worth of ETH and reduced his holdings in several other altcoins, including Ethena (ENA) and Uniswap (UNI). This selling is noteworthy given that earlier this year he had predicted Ethereum might reach $10,000 by the close of 2026.

Joep Gerla provided commentary, positing that ETH might trade within the so-called manipulation area for a while, where further price declines could happen. Subsequently, he predicts the cryptocurrency will move into the distribution zone and could ascend as high as $3,600. Separately, the X user Wealthmanaged stated that ETH is currently testing the base of a particular flag pattern and anticipates a substantial rebound exceeding $3,000 from its present level.

If the month ultimately finishes in negative territory, it would interrupt the asset's current winning streak and prevent it from achieving four consecutive months of gains. Ethereum's average return for October is +4.14%, yet this month is currently positioned to be one of the infrequent exceptions that register in the red.