The recent Ethereum selloff had a major impact on post-session sentiment the price dropped below $2,000 level and with it a significant part of the altcoin market fell. The movement caused widespread fear and caution among Ethereum traders. However, some analysts believe that there will be a rally soon.

In a post shared on X, the ChainHub cryptocurrency analyst stated that current conditions are more of an exhaustion, with a huge recovery following a massive decline.

The ETHBTC structure holds

ChainHub emphasized that The ETH/BTC pair is still technically valid and has not experienced any structural invalidation despite the recent price collapse. Although Ethereum price has fallen much lower than many expected during a disaster it will not fall indefinitely. He also pointed out a level of fear that is currently rising to extremes rarely seen, noting that such environments always appear near major turning points. “After huge fear and huge declines, there is huge growth,” the analyst said.

On Ethereum itself, ChainHub admitted that the loss of position at the $2,000 level was essential, but highlighted another major area of ​​concern around $1,700. This zone is technically compliant with A a broader corrective structure and it is possible that Ethereum won’t even fall that far before it rebounds. However, even if Ethereum does indeed drop to $1,700, the price action reaching this area means that Ethereum is finally in a region where buyers can start to reassert control.

He linked this perspective to Bitcoin’s recent behavior. Bitcoins rejection for $72,000 opened the door to retesting the high end of the summer 2024 demand range, which extends from around $59,000 to $49,000.

ChainHub noted that this is the first significant interaction with this demand area since 2025, when the Fibonacci alignment is at $57,000 to $58,000. This increases the likelihood that Bitcoin is in the process of forming a base and establishing a bottom there.

Altcoins are reaching significant levels of demand

ChainHub also noted that Ethereum is not alone in testing critical levels. Several major altcoins, including Solana and XRP, have moved into essential demand zones. Many of these altcoins have retraced their August 2024 lows or filled earlier wicks, which are areas that have not yet been broken on the first attempt.

Salt, e.g. dropped below $100 for the first time since January 2024 and recently was quoted at a low of $75. As noted by ChainHub, with this move, Solana finally achieved significant demand for the first time in two years.

Dogecoin, Cardano and Avalanche everyone also completed it declines on October 10, restoring balance and touching the low of August 2024. While there is still the possibility of restricted declines, the market is expected to begin to form a range and then begin to building bullish momentum in the coming weeks.

Featured image from Unsplash, chart from TradingView