TLDR
- ETH is down 15% in 24 hours, testing price levels not seen since November 2023
- Nearly $165 million in ETH long positions liquidated in 12 hours
- Ether spot ETFs saw outflows of $335 million last week
- Polymarket bettors predict 76% chance of ETH hitting $1,900 by month-end
- Technical analysis shows ETH facing resistance at $2,160 with support at $2,000
Ethereum, the second-largest cryptocurrency by market capitalization, has crashed to the $2,000 level, marking its lowest price point since November 2023. The digital asset is experiencing heavy selling pressure amid broader market volatility.
The price of ETH has fallen by 15% in the last 24 hours according to coingecko data. This sharp decline has dragged down the entire crypto market.
ETH Price
Market data from CoinGlass reveals that nearly $165 million in leveraged long ETH positions have been liquidated in just the past 12 hours. These liquidations happen when traders betting on price increases are forced to close their positions due to falling prices.
Ethereum’s decline comes as U.S. President Donald Trump’s trade war threats rattle global markets. The crypto market appears to be following broader financial markets lower as risk appetite decreases among investors.
Institutional interest in Ethereum appears to be waning. Ether spot ETFs recorded an outflow of $335 million last week, based on data from SoSoValue. This suggests that larger investors are reducing their exposure to the digital asset.
The bearish sentiment is also reflected in prediction markets. Bettors on Polymarket are giving a 76% chance of ether hitting $1,900 by the end of March, suggesting further downside may be ahead.
Technical Analysis
Technical analysis shows that Ethereum failed to maintain support above the $2,350 level. The price has broken below several key support zones and the 100-hourly Simple Moving Average.
Chart patterns reveal a new bearish trend line forming with resistance near $2,160. This technical formation suggests that upward price movement may face strong selling pressure at this level.
On the upside, Ethereum faces hurdles near the $2,080 level initially. The first main resistance is located near $2,150, followed by a stronger barrier at $2,275, which represents the 50% Fibonacci retracement level of the recent decline.
If Ethereum fails to clear the $2,160 resistance, analysts suggest it could continue its downward trend. The first major support sits at the $2,000 level, a psychologically key price point for traders.
A break below $2,000 could open the door to further declines, with the next support levels at $1,880, $1,750, and potentially even $1,640. These price targets represent areas where buying interest might emerge.
The current price action follows several months of underperformance by Ethereum relative to Bitcoin. This suggests that traders have been favoring Bitcoin over Ethereum in recent market conditions.
Multiple factors appear to be weighing on Ethereum prices. These include bearish investor sentiment, weak institutional demand, and macro headwinds such as trade war fears, inflation concerns, and stock market weakness.
For recovery to begin, Ethereum would need to clear the $2,160 and $2,250 resistance levels. A move above $2,350 might signal a potential trend reversal and could lead to a test of the $2,450 or even $2,500 levels.
At the time of writing, Ethereum is consolidating below the 23.6% Fibonacci retracement level of its recent decline from the $2,550 high to the $2,003 low. This indicates that sellers remain in control of the market.
