Key Takeaways
- • The Ethereum Foundation sold approximately 2,800 ETH on October 26 via the decentralized exchange CoW Swap, receiving over $6 million in the USDS stablecoin, according to on-chain data cited by TradingKey.
- • Ether briefly lost the $2,300 level and fell more than 2% intraday, becoming the heaviest-selling major cryptocurrency as Bitcoin broke below $80,000.
- • TradingKey's technical analysis flags a potential further 13% decline to $2,000, a level that coincides with the 200-day moving average.
- • The market assigns a more than 90% probability that the Federal Reserve holds rates unchanged at its October 28 decision, keeping pressure on non-yielding crypto assets.
- • The indefinite postponement of public testing for the Glamsterdam upgrade, announced October 22, has weakened bullish confidence in a near-term rebound.
Summary
On October 26, Ether (ETH) became the asset under the heaviest selling pressure in the major cryptocurrency sector, falling more than 2% intraday and briefly losing the $2,300 level. According to TradingKey, the decline came amid market-wide high-leverage liquidations, Bitcoin breaking below the $80,000 mark, and rising U.S. Treasury yields driven by hawkish Federal Reserve expectations.
The most direct catalyst was a sale of ETH by the Ethereum Foundation. Per on-chain data cited in the report, the Foundation sold approximately 2,800 ETH through the decentralized exchange CoW Swap, receiving more than $6 million in the USDS stablecoin. Against ETH's market capitalization of over $100 billion, the sale is small in scale, but TradingKey argues that it added selling pressure in a fragile market structure and triggered panic selling.
Macro conditions also weighed on the market. The Federal Reserve is scheduled to announce its interest rate decision on Wednesday, October 28, and the market assigns a probability above 90% that rates will remain unchanged. Higher-for-longer rates increase the holding cost of non-yielding assets, which TradingKey says is driving risk-averse capital out of crypto.
Development news added to the pressure. On October 22, Ethereum's core development team suspended public testing of the "Glamsterdam" scaling upgrade over smart contract security considerations, and the upgrade's planned launch on the Hoodi testnet on October 26 was postponed indefinitely. Short-to-medium-term swing investors reacted to the timeline delay, further weakening confidence in a rebound.
On technicals, TradingKey states that ETH could fall another 13% to $2,000, a level it describes as a key psychological barrier that also coincides with the 200-day moving average and several bottoms formed earlier in the year. A recovery would require bulls to establish a base above the $2,300 region, supported by a sentiment rebound tied to U.S. technology earnings, with the outlook pointing to a possible move toward $2,800 by year-end. The article notes it was translated using AI and is provided for informational purposes only.
The most direct catalyst was a sale of ETH by the Ethereum Foundation. Per on-chain data cited in the report, the Foundation sold approximately 2,800 ETH through the decentralized exchange CoW Swap, receiving more than $6 million in the USDS stablecoin. Against ETH's market capitalization of over $100 billion, the sale is small in scale, but TradingKey argues that it added selling pressure in a fragile market structure and triggered panic selling.
Macro conditions also weighed on the market. The Federal Reserve is scheduled to announce its interest rate decision on Wednesday, October 28, and the market assigns a probability above 90% that rates will remain unchanged. Higher-for-longer rates increase the holding cost of non-yielding assets, which TradingKey says is driving risk-averse capital out of crypto.
Development news added to the pressure. On October 22, Ethereum's core development team suspended public testing of the "Glamsterdam" scaling upgrade over smart contract security considerations, and the upgrade's planned launch on the Hoodi testnet on October 26 was postponed indefinitely. Short-to-medium-term swing investors reacted to the timeline delay, further weakening confidence in a rebound.
On technicals, TradingKey states that ETH could fall another 13% to $2,000, a level it describes as a key psychological barrier that also coincides with the 200-day moving average and several bottoms formed earlier in the year. A recovery would require bulls to establish a base above the $2,300 region, supported by a sentiment rebound tied to U.S. technology earnings, with the outlook pointing to a possible move toward $2,800 by year-end. The article notes it was translated using AI and is provided for informational purposes only.
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