Ethereum faces a sharp decline, falling below several key support levels. Market sentiment remains bearish, and further corrective integration is likely to precede a deeper decline.
Technical Analysis
By Shayan
Daily Charts
As mentioned earlier, ETH writes about future troubles for assets, especially since one of them was the lower limit of the upward channel. This increased sales pressure can be attributed to a risk-off market environment driven by geopolitical and economic uncertainties, including ongoing tariff disputes.
As a result, Ethereum fell below its key support zone at $2K and $1.5,000 as investors shifted their focus to safer assets like gold, US dollars and even Bitcoin.
Currently, Ethereum is testing its critical support zone at $1.5,000, which could temporarily decrease even further. However, there is a possibility of a medium-term scenario where another leg is likely to be falling towards a support level of $1.1K, as sales pressure remains dominant.
4-hour chart
Ethereum’s bear market structure remains intact, featuring low and low prices, which strengthens seller control. Prices have recently fallen sharply to the $1.5,000 region, facing strong sales pressure near the descending trendline. Furthermore, the 100-day moving average fell below the 200-day MA, forming a death cross. This is a strong bearish signal suggesting further decline.
Given these factors, ETH is likely to experience continuous modified integration, followed by a deeper medium-term decline. However, short-term volatility and minor price rebounds are still possible before the next major move.
On-Chain Analysis
By Shayan
Binance liquidation heatmap provides valuable insight into potential price targets, as liquidity levels often act as magnets for market movement. The integration of Ethereum from August to November 2024 created a critical cluster of liquidation levels just below the $2K support zone. These levels accommodate long-term liquidation and make them attractive targets for bears and facility sellers.
Recently, large market sales have pushed prices into this liquidity zone, causing the liquidation of many long positions. This cascade of liquidation further fueled momentum, resulting in a significant decline. However, this negative side move could provide smart money investors with opportunities for excellent accumulation, placing them ahead of the next major move.
