Ethereum price once again faces strong selling pressure crashing under $2,000 earlier today, and opening the gates for another 75% drop to $1,250 levels. Over the last week, ETH has lost more than 16%, thereby extending its year-to-date losses to more than 37%, suggesting a strong bearish sentiment for the altcoin. On the other hand, the Ethereum ETF outflows have also surged last week, suggesting dropping institutional interest.
Will Ethereum Price Crash Further From Here?
The world’s largest altcoin Ethereum (ETH) has come under strong bearish grip eroding all of its gains following the US Presidential election in November 2024. Crypto analyst Ali Martinez highlighted that Ethereum is breaking down of a parallel channel, a technical pattern that suggests bearish price action ahead. If Ethereum price fails to hold this support, it can crash by another 75% all the way to $1,250 levels.
Source: Ali Martinez
Today’s ETH price drop comes amid the broader crypto market correction as market liquidations soar to more than $600 million as per the Coinglass data. Additionally, the ETH open interest has dropped by 2.67% to $19 billion, hinting bearish sentiment among futures traders.
Ethereum Liquidations Skyrocket
The Ethereum market faced significant turbulence yesterday, with over $230 million in long positions liquidated, according to crypto analyst Ali Martinez. The wave of liquidations has shaken out overleveraged traders, highlighting the current market volatility surrounding the altcoin.
Source: Ali Charts
Furthermore, the institutional interest in Ethereum has been falling fast. During the last week, the total outflows from spot Ethereum ETFs surged over $120 million. Despite this fall, crypto market analysts continue to stay bullish for ETH expecting it to kickstart its recovery journey again.
Will ETH Recover Anytime Soon?
Despite the bearish onslaught over the past few weeks, market analysts continue to be bullish about an Ethereum price recovery in the coming days. Crypto analyst Ali Martinez reports that Ethereum’s largest whales have purchased 330,000 ETH in the past 48 hours, signaling strong accumulation by major holders.
Source: Ali Martinez
Additionally, over 600,000 ETH have been withdrawn from crypto exchanges in the last week, pointing to a potential shift toward long-term holding. These trends highlight growing confidence among large investors and reduced selling pressure on exchanges.
For Ethereum momentum to shift on the upside, the bulls must reclaim $2,460 resistance. A massive 10.95 million investors hold ETH at these levels, and thus, investors need to break past this to trigger a rally to the upside.
Crypto trader and analyst Crypto Patel has expressed bullish sentiment on Ethereum (ETH), emphasizing his strategy of buying during market dips. “Buying $ETH on every dip for $10k/ETH,” Patel shared. He believes that this is the last opportunity for accumulation before Ethereum’s next major price surge.
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