Ethereum’s price has been steadily declining for weeks, leaving investors worried. The recent failure to break above $2,000 has only strengthened the bearish sentiment.
A Market in Distress
The crypto market is currently facing headwinds from global economic uncertainty and fears of a trade war. This has pushed investors away from riskier assets like crypto, hitting Ethereum particularly hard. Analyst Big Cheds points out that ETH’s fall from $3,400 to its current level (around $1,840) confirms a continuing downtrend.
Key Support Levels Crumbling
Ethereum is losing crucial support levels. Each failed attempt to recover weakens investor confidence, leading analysts to predict a deeper correction. This is especially concerning because Ethereum underpins much of the crypto ecosystem. A prolonged downturn would negatively impact the broader altcoin market and DeFi.
The $1,200-$1,300 Prediction
Big Cheds suggests that if the downtrend continues, the next potential support level lies between $1,200 and $1,300. This would represent a correction of over 60% from the recent peak and would seriously test investor confidence.
Technical Indicators Pointing Down
Ethereum’s price is currently below both the 4-hour 200 moving average (MA) and exponential moving average (EMA), both around $2,100. These have acted as strong resistance since December 2024. Breaking above these levels would be a significant bullish signal, potentially sparking renewed buying interest. However, even before that, reclaiming the $2,000 psychological level is crucial. A strong break above both $2,000 and $2,100, accompanied by significant trading volume, could signal a recovery. Until then, the outlook remains bearish.
