Ethereum Slumps as Key Support Levels Collapse
Key Takeaways
- Ethereum (ETH) is currently in a clear downtrend.
- Important support zones have been breached – particularly the US$1,824 level.
- Technical indicators such as On-Balance Volume (OBV) point to continued selling pressure.
- A short-term price drop toward US$1,600 is likely.
Selling Pressure Dominates the Market
In recent weeks, Ethereum has lost approximately 11.8% of its value. This decline is not random: large ETH holders (known as “whales”) have increasingly transferred coins to exchanges. This is a classic signal of selling intent. At the same time, the market is showing a bearish structure across multiple time frames – a pattern of falling prices.
Technical Analysis: Support Levels Breaking Down
On the daily chart, ETH has been trading below the 20-day moving average since the beginning of the year. This moving average often serves as an indicator of the short-term trend – and it’s clearly pointing downward. Particularly concerning: the psychologically important US$2,000 level has been breached. Support at US$1,824, which held in October and November 2023, has also been broken.
OBV Confirms the Downtrend
The On-Balance Volume (OBV) is a technical indicator that relates volume to price movement. When OBV declines, it means more volume is occurring on down moves than on up moves. For Ethereum, OBV is in a clear downtrend on both the daily and 4-hour charts. This underscores the dominance of sellers.
Resistance Levels and Next Price Targets
The former support at US$1,850 now acts as resistance. An attempt to break above US$2,100 also failed. The next logical price range that could act as a target lies between US$1,760 and US$1,640. According to liquidity data, this area contains a so-called “liquidity pocket” – a zone with high trading activity that can attract price movement.
What Does This Mean for You?
If you’re invested in Ethereum or considering entering the market, you should closely monitor current conditions. Technically, there are strong signs that the price could continue to fall in the short term. A drop to US$1,600 is realistic. However, this could also present a new buying opportunity in the long run – provided the market finds stability at that level.
Our Assessment
Ethereum is currently showing a clear period of weakness. Both technical indicators and the behaviour of major market participants point to further losses. In the short term, you should expect a decline toward US$1,600. Whether a bottom forms at that level remains to be seen. For long-term investors, this could be an opportunity – but only with a clear risk strategy.
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Sources
- TradingView
- Coinglass
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $1,860.35 |
| 24h % | -0.59 % |
| 7d % | -9.92 % |
| 30d % | -21.60 % |
| 60d % | -42.98 % |
| 1y % | -43.64 % |
| Market Cap | $224,540,799,420.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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