Ethereum’s recent sell-off has significantly impacted market sentiment, especially after its price dropped below the $2,000 level. This decline has not only affected Ethereum but has also pulled much of the altcoin market down alongside it. The atmosphere has become rife with fear and caution among traders. However, some analysts believe that a bullish turnaround may be on the horizon.

Crypto analyst ChainHub shared insights on X, suggesting that the current market conditions indicate a state of exhaustion. He asserts that after experiencing massive downside, a substantial upside is likely to follow. Despite the recent price crash, the ETH/BTC trading pair still holds its technical validity, which ChainHub considers a positive sign.

The analyst acknowledges that the drop below $2,000 was a pivotal moment but highlights a more critical area of interest around $1,700. This price zone aligns with a broader corrective structure, suggesting that Ethereum may not need to fall to $1,700 before it starts to recover. ChainHub emphasizes that if Ethereum does reach this level, it will enter a zone where buyers are likely to reassert control.

Notably, ChainHub links this outlook to Bitcoin’s recent behavior. Bitcoin's rejection at $72,000 has opened the door for a retest of its demand range, which stretches from about $59,000 to $49,000. This marks the first significant interaction with that demand area since 2025, increasing the odds that Bitcoin is forming a base at these levels.

ChainHub's analysis extends beyond Ethereum as several major altcoins, including Solana and XRP, have also tested critical demand zones. Many of these altcoins have revisited their August 2024 lows or filled prior price wicks, areas that have not yet broken on initial attempts. Solana, for instance, has dipped below $100 for the first time since January 2024, recently trading at a low of $75. This decline has allowed Solana to touch meaningful demand for the first time in two years.

Additionally, Dogecoin, Cardano, and Avalanche have filled their downward wicks on October 10, restoring balance and touching the August 2024 low. While there's still a possibility for limited downside, the expectation is that the market will begin to form a range and build bullish momentum in the coming weeks. ChainHub's insights provide a glimmer of hope for traders navigating this tumultuous market, suggesting that the current fear might be a precursor to a significant recovery in the crypto space.