TLDR
- ETH price fell nearly 20% in the week ending March 9, the largest weekly drop since November 2022
- The sell-off broke a key bullish trendline that began after the June 2022 Terra crash
- ETH has dropped below the critical $2,000 support level, opening the door for a potential decline to $1,250-$1,500
- Major Ethereum whales have purchased 330,000 ETH in the past 48 hours despite the downturn
- Over 600,000 ETH have been withdrawn from exchanges in the last week, suggesting a shift toward long-term holding
Ethereum’s price has taken a sharp downturn, falling nearly 20% in the week leading up to March 9. This marks the largest weekly percentage drop for ETH since November 2022, according to data from TradingView.
The dramatic sell-off has broken through a key bullish trendline that began after the Terra crash in June 2022. This breakdown suggests that Ethereum’s nearly three-year bullish trend has come to an end.
ETH has now dropped below the critical $2,000 support level. This price point had served as a repeated area of seller exhaustion since August, and its breach opens the door for further declines.
Market analysts are now eyeing the $1,500 level as the next support zone. Some technical analysts suggest an even steeper drop to $1,250 is possible if current support levels fail to hold.
The breakdown of this long-term trendline carries weight among traders. Trendlines help visualize the direction of fund allocation and likely price movements in the market.
When a prolonged bullish trendline is breached, it often signals that sellers are overpowering buyers. This typically indicates a bearish shift in market trend and can trigger additional selling pressure.
ETH’s year-to-date losses have now extended beyond 37%. This deep correction reflects growing bearish sentiment surrounding the world’s second-largest cryptocurrency.
The sell-off coincides with increasing outflows from Ethereum ETFs. Last week alone, these outflows totaled $120 million, suggesting waning institutional interest.
Market liquidations have also spiked during this downturn. Over $230 million in long positions were wiped out as prices fell, according to market data.
The ETH open interest has dropped by 2.67% to $19 billion. This decline hints at bearish sentiment among futures traders in the current market environment.
Whales appear to be buying the dip
Despite these negative indicators, some whales appear to be buying the dip. Ethereum’s largest whales purchased 330,000 ETH in the past 48 hours, showing continued confidence among major holders.
Additionally, over 600,000 ETH have been withdrawn from crypto exchanges in the last week. This trend may indicate a shift toward long-term holding rather than immediate selling.
For Ethereum to regain upward momentum, bulls would need to reclaim the $2,460 resistance level. This price point is held by nearly 11 million investors, making it a key threshold for any potential recovery.
The past week’s high of $2,523 now represents an important level for bulls to overcome. A sustained move above this mark would be needed to invalidate the current bearish outlook.
Trendline breaches often prompt cascading effects as more traders react to the technical breakdown. The coming days will be crucial in determining whether ETH can find stability or if the downward pressure will continue.
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