Ethereum has faced intense selling pressure over the past month, emerging as the worst performer among the top five cryptocurrencies by market capitalization. During this period, ETH lost 12.6 percent of its value and slipped below the critical psychological threshold of $2,000, with prices falling as low as $1,964.
Price moves and trading volume surge
The downward momentum intensified as Ethereum failed to hold the $2,000 support. On the most recent trading day, ETH briefly declined to $1,964 before making a slight recovery. Within 24 hours, trading volume surged by 24 percent, reaching $18 billion. This figure represents approximately 8 percent of Ethereum’s circulating market cap, suggesting that the selling trend has become increasingly severe.
Forced liquidations hit multi-month records
The bearish movement in the broader crypto market triggered a wave of forced liquidations in derivatives positions. Across all cryptocurrencies, $861 million in long positions were liquidated in a single trading session, with $138 million attributed to Ethereum alone. This marked the second biggest daily liquidation event in the past three months and created additional downward pressure on prices as stop-loss orders were triggered.
Technical analyst Ali Charts warned on social media that if Ethereum’s weekly close falls below $1,850, selling could accelerate further. He noted that key medium-term support lies at $1,560, while the multi-year low is at $1,070.
Glossary: Forced liquidation occurs in crypto futures when the system automatically closes investor positions due to inadequate collateral as prices fall below a certain level. Such events can amplify price volatility.
Market sentiment and technical thresholds
Parallel to the price drop, market sentiment has become markedly negative. The Fear and Greed Index now stands at 32, a level last recorded at the start of February, which indicates that the market has entered the fear zone.
Short-term technical analysis identifies a downward-sloping trendline as resistance near $2,010, with further resistance zones at $2,020 and $2,050. For investors expecting a rebound, $1,965 is a crucial support level. A breach below this point could open the door to further declines toward $1,950, $1,920, and possibly $1,850.
| Level | Support | Resistance |
|---|---|---|
| 1 | $1,965 | $2,010 |
| 2 | $1,950 | $2,020 |
| 3 | $1,920 | $2,050 |
| 4 | $1,850 |
Economic backdrop and RSI indicator
On the macroeconomic front, the latest US core PCE inflation data came in at 3.3 percent, matching expectations. However, persistently elevated inflation has tempered hopes for interest rate cuts this year.
From a technical perspective, the weekly Relative Strength Index (RSI) for Ethereum is approaching the critical 30 level. Historically, ETH has tended to find a bottom and rebound when its RSI dips below 30, as seen in 2019 and 2022. This means analysts still see the possibility that ETH could retest the cycle low around $1,750 in the short term.
Currently, Ethereum is trading near the $2,000 mark, with $2,010 acting as the main level of resistance that is limiting price recovery efforts.
