Ether Price Forecast: Foundation Sell-Off Breaks $2,300, Risks Further 13% Drop
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Ether dropped over 2% below the $2,300 level on October 26, driven by an Ethereum Foundation token sale, macro headwinds from rising U.S. Treasury yields, and the postponed Glamsterdam upgrade. With the Federal Reserve's rate decision ahead, hawkish expectations and high holding costs weigh on non-yielding assets. Technically, ETH faces a potential 13% decline toward the $2,000 support level, which aligns with its 200-day moving average. However, defending the $2,300 threshold alongside improving market sentiment could trigger a bullish reversal targeting $2,800 by year-end.
TradingKey - Foundation sell-off triggers selling pressure as ETH loses $2,300 critical line again, technicals signal potential 13% drop.
On October 26, under heavy pressure from market-wide high-leverage liquidations, Bitcoin (BTC) breaking below the $80,000 mark, and rising U.S. Treasury yields driven by hawkish Fed expectations, Ether (ETH) became the asset under the heaviest selling pressure in the major cryptocurrency sector, falling over 2% intraday and briefly losing the $2,300 level.
The most direct catalyst for Ether's decline this time was the Ethereum Foundation's ETH sell-off, which triggered panic selling in the market. According to on-chain data, the Ethereum Foundation sold approximately 2,800 ETH today via the decentralized exchange CoW Swap, receiving over $6 million worth of the stablecoin USDS.
In terms of capital scale, compared to ETH's market size of over $100 billion, the Ethereum Foundation's sell-off is negligible. However, under the current fragile market structure, it has added fuel to the fire. This Wednesday (October 28), the Federal Reserve will announce its latest interest rate decision. The market currently assigns a more than 90% probability to rates remaining unchanged, and a high-interest-rate environment increases the holding cost of non-yielding assets, driving global risk-averse capital out of the crypto market.
In addition, the indefinite postponement of the Glamsterdam upgrade originally scheduled for today on the Hoodi testnet further battered bullish market confidence. On October 22, Ethereum's core development team announced a suspension of public testing for the "Glamsterdam" scaling upgrade due to extreme smart contract security considerations, raising concerns among some short-to-medium-term swing capital over timeline delays and further weakening bulls' confidence in a rebound.
With rate cuts virtually off the table, Ether's price remains under downward pressure. From a technical perspective, Ether's price could fall another 13% to $2,000, a level that serves not only as a crucial psychological barrier but also coincides with the 200-day moving average and multiple bottom bases from the first half of the year.
ETH Price Chart, Source: TradingView
If ETH bulls can successfully build a bottom and halt the decline in the $2,300 region, combined with market sentiment recovery driven by U.S. tech earnings, ETH will immediately launch a rally to reverse the downward trend, fully defusing the near-term risk of further declines and laying a foundation for another push toward $2,800 by year-end.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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