Key Takeaways
- Ethereum has plummeted 12.6% over the last month, leading losses among top-tier cryptocurrencies.
- The digital asset breached the critical $2,000 support zone, bottoming at $1,964 during the session.
- Forced liquidations of long positions totaled $138 million in 24 hours — marking the second-largest wipeout in three months.
- Market sentiment indicator shows Fear and Greed Index at 32, reflecting widespread investor anxiety.
- Technical analyst Ali Charts cautions that a weekly close under $1,850 could trigger a cascade toward $1,560 and possibly $1,070.
Ethereum (ETH) continues to face mounting selling pressure. Over the past month, the cryptocurrency has shed 12.6%, significantly underperforming its peers among the top five digital assets by market capitalization.
The decline accelerated sharply this week as ETH broke through the $2,000 barrier — a critical support level that market participants view as a crucial psychological benchmark. The token briefly touched $1,964 during intraday trading before staging a modest recovery.
Trading activity surged 24% over 24 hours, reaching $18 billion in volume. This represents approximately 8% of Ethereum’s total circulating market capitalization — a telltale indicator that bearish momentum is intensifying.
Forced Liquidations Surge to 90-Day Peak
The downward spiral has been amplified by cascading liquidations. Across the broader cryptocurrency landscape, long positions worth $861 million were forcibly closed in a single trading session. Ethereum accounted for roughly one-quarter of these forced exits.
One day prior, $138 million worth of leveraged ETH long positions were liquidated — representing the second-largest daily liquidation event over the past three months. Such dramatic liquidation spikes typically indicate a “long squeeze” scenario, where declining prices activate stop-loss orders that fuel additional downward pressure.
Crypto analyst Ali Charts issued a stark warning via social media: “If Ethereum $ETH prints a weekly close below $1,850, a downside acceleration becomes highly likely.” He identified two critical downside targets — $1,560 representing intermediate support, and $1,070 marking the lower boundary of Ethereum’s multi-year trading channel. His analysis draws from the broader channel framework and recent price rejections.
Investor confidence has deteriorated in tandem with falling prices. The Fear and Greed Index currently registers 32, its lowest reading since early February, placing market sentiment firmly in “Fear” territory.
Technical Picture Looks Increasingly Bearish
Resistance zones on shorter timeframes are building up. A descending trend line has emerged on the hourly chart, establishing resistance around $2,010. Beyond that barrier, additional obstacles await at $2,020 and $2,050.
For those hoping for a reversal, maintaining support at $1,965 is critical. A breakdown beneath this level would expose $1,950 as the next line of defense, followed by $1,920, and eventually the pivotal $1,850 threshold.
On the macroeconomic front, recently released U.S. Personal Consumption Expenditures (PCE) inflation data registered at 3.3% — matching forecasts but remaining elevated enough to eliminate prospects for interest rate reductions this year. This dampens expectations for any near-term catalyst from accommodative monetary policy.
One technical pattern under close observation 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, Ethereum subsequently retested cycle lows before initiating recoveries. The RSI is approaching this critical threshold once again, suggesting a retest of the $1,750 cycle low remains a realistic possibility.
Ethereum currently hovers around $2,000, with the descending trend line limiting upside attempts near $2,010.
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