Can Ethereum Reach $3,000 in October?

Current Price Overview

Ethereum is currently trading at $2,600, having dropped nearly 5% since the swing high on September 27. This decline mirrors Bitcoin’s recent 5% drop in the past day. Although ETH saw a 10% rally last week, its short-term outlook remains uncertain.

Market Outlook: Will ETH Hit $3,000?

The mid-to-long-term outlook for Ethereum remains unchanged as the crypto market enters the fourth quarter. Technical and on-chain analyses suggest that it is a high-probability scenario for Ethereum to test the $3,000 psychological level this October.

• Historical price performance for October and Q4 tends to be bullish.
• ETH may exceed $3,000 and potentially revisit the $3,500 resistance level.
• A correction may occur before reaching $3,000.

Why is Ethereum Down Today?

As of today, Ethereum’s price has declined by 1.92% due to a spike in selling pressure triggered by Bitcoin’s tumble from a high of $66,000. Despite this drop, the medium-to-long-term outlook for BTC remains positive for three key reasons:

• Bitcoin recently breached a critical resistance level at $65,000.
• Ethereum and other altcoins saw double-digit increases following BTC’s rise.
• The bearish third quarter is concluding, potentially setting the stage for Ethereum’s ascent.

Short-term Correction Likely for ETH

According to Santiment’s 30-day Market Value to Realized Value (MVRV) ratio, which is currently around 6.5%, Ethereum could be due for a short-term correction. Historical trends show that entering the 6% to 10% range often precedes a reversal in price.

This correction could occur over the weekend or into the next week, allowing the 30-day MVRV to increase into the danger zone.

Technical Analysis: ETH’s Path to $3,000

Ethereum’s daily price chart indicates it is trading within a range of $2,309 to $2,820. Key levels to watch include:

• The September 23 swing high at $2,702.
• The demand zone between $2,252 and $2,440.

If buyers fail to maintain momentum around $2,702, a correction may occur, making the demand zone a key buy area as October historically yields gains.

Looking Ahead

If Ethereum can break above the $2,800 to $3,000 range, it may lead to an impulsive move towards the next key hurdles at $3,352 and $3,497.

In conclusion, while Ethereum may experience a short-term correction, the outlook is significantly more favorable than it was a month ago. A retest of the $3,000 psychological level seems plausible, with potential extension towards $3,500.