Key Highlights
- Ethereum has declined 12.6% over the last month, posting the steepest losses among top-tier cryptocurrencies.
- The token breached the critical $2,000 support zone, touching an intraday bottom at $1,964.
- Forced liquidations of long positions reached $138 million within 24 hours — marking the second-largest liquidation event in three months.
- Market sentiment has deteriorated to 32 on the Fear and Greed Index, indicating widespread investor anxiety.
- Crypto analyst Ali Charts cautions that a weekly candle close beneath $1,850 may trigger a cascade toward $1,560 and potentially $1,070.
Ethereum (ETH) continues to face significant headwinds. Over the past month, the cryptocurrency has shed 12.6% of its value, representing the most severe decline among the five largest digital assets by market capitalization.
The selloff accelerated sharply when ETH broke through the $2,000 threshold — a widely monitored price point that serves as both technical support and psychological barrier for market participants. The token briefly touched $1,964 during the session before staging a modest recovery.
Trading activity surged by 24% over the past day, reaching $18 billion in volume. This represents approximately 8% of Ethereum’s total circulating market capitalization — a signal that intensifying selling pressure is gripping the market.
Mass Liquidations Approach Three-Month Peak
The price decline has been amplified by widespread forced liquidations. Across the broader cryptocurrency ecosystem, long positions totaling $861 million were liquidated in a single trading session. Ethereum accounted for roughly one-quarter of these liquidations.
Just prior to this, $138 million worth of leveraged ETH long positions were forcibly closed — representing the second-highest daily liquidation volume recorded in the last 90 days. Such events typically indicate a “long squeeze” dynamic, where declining prices automatically trigger stop-loss orders, creating additional downward momentum.
Cryptocurrency analyst Ali Charts highlighted the precarious situation on social media platforms: “If Ethereum $ETH prints a weekly close below $1,850, a downside acceleration becomes highly likely.” His analysis identifies two critical downside objectives — $1,560 serving as intermediate support, and $1,070 representing the lower boundary of Ethereum’s multi-year trading channel. These projections derive from broader channel structure analysis and recent price rejection patterns.
Investor confidence has deteriorated in tandem with price action. The Crypto Fear and Greed Index currently registers 32, a reading last observed in early February, placing sentiment firmly within “Fear” territory.
Technical Analysis Points to Further Weakness
Resistance barriers are mounting on shorter timeframes. A descending trend line has emerged on hourly charts, establishing resistance near the $2,010 level. Beyond this, additional obstacles exist at $2,020 and $2,050.
For those maintaining bullish positions, $1,965 represents the crucial support threshold to defend. A decisive break below this level would expose $1,950, followed by $1,920, and ultimately $1,850.
From a macroeconomic perspective, recently released U.S. Personal Consumption Expenditures (PCE) inflation data registered at 3.3% — matching consensus forecasts but remaining elevated enough to eliminate prospects for Federal Reserve interest rate reductions this year. This diminishes expectations for near-term monetary easing that might otherwise support risk assets.
One technical pattern attracting analyst attention involves the weekly Relative Strength Index (RSI). Historical precedent from 2019 and 2022 shows that whenever the RSI declined to 30 or lower, it consistently marked the conclusion of bearish cycles. In both instances, price action retested cycle lows before initiating sustained recoveries. The RSI currently hovers near this critical threshold, suggesting a potential retest of the $1,750 cycle low remains within the realm of possibility.
Ethereum currently trades in the vicinity of $2,000, with the bearish trend line limiting upside attempts at $2,010.
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