Ethereum price could slip by 40%, Peter Brandt argues

Ethereum price remained under pressure as foreign exchange reserves increased, ETF inflows stagnated, and market share in decentralized finance decreased.

Ethereum (ETH) was trading at $2,550 on Friday, November 1, down 37% from this year’s high. In comparison, Bitcoin (BTC) is just 4.7% below its all-time high.

Ether faces several challenges. Data from CryptoQuant shows that token volume on exchanges has increased in recent months, indicating that some token holders have started selling. Those reported to have sold include the Ethereum Foundation and Vitalik Buterin.

Second, spot Ethereum ETFs are seeing demand from investors slowing. According to Sosovalue, cumulative outflows stood at $480 million, while Bitcoin ETFs saw inflows of over $24 billion.

Ethereum also lost market share in the decentralized exchange sector to Solana (SOL). Data shows that Solana DEX platforms such as Raydium and Orca surpassed Ethereum’s $42 billion in volume with $51 billion in October.

Ethereum’s market share may face further pressure when Uniswap launches its layer 2 blockchain Unichain.

Additionally, Ethereum’s control over the stablecoin market dropped to approximately 48%, followed by Tron, BNB Smart Chain, Arbitrum, and Base. A year ago, its share was over 60 percent.

Stablecoins have become an important part of the crypto industry. For example, Tether made a net profit of $2.2 billion in the third quarter, increasing its nine-month profit to $9 billion.

Additionally, data shows that stablecoins are booming in South Korea, where they have become important in cross-border payments. Highly sanctioned countries such as Iran, North Korea, and Russia have also adopted these tokens.

Ethereum price may decline Ethereum price chart according to TradingView

According to analyst Peter Brandt, there is a high probability that the Ethereum price will fall in the coming weeks. It predicts a drop to $1,551, indicating a 40% decline from current levels.

The daily chart shows that Ethereum remains below the 50-day moving average with key support at $2,817, while the neckline of the double top formation is at $3,975.

Ethereum has also formed a bearish pennant pattern and the triangle pattern is approaching its confluence. This indicates a potential bearish trend in the coming weeks. In such a case, the starting level to watch would be $2,117, which was the low point on August 5.