A deepening selloff in the crypto market has sent the second-largest cryptocurrency, Ethereum, trading at levels last seen in two
years. The crypto plunged to trade at nearly $1,500, erasing billions in value
and triggering widespread liquidations.
As bearish sentiment takes hold, traders are
questioning whether ETH can stabilize or if a plunge toward $1,000 is the next
chapter. Ethereum’s recent price action points to a possible downward pressure.
Technical Breakdown Aligns With On-Chain Weakness
The token, now hovering around $1,500, Ether, is on
clear downward momentum. The crypto is trading below both the 50 and 200 moving
averages.
Previous support levels at $1,829 and $1,550 have
collapsed under mounting sell pressure. Interestingly, since December, the
price has been on a clear downward trend of lower highs and lower lows.
The sell-off has been a widespread trend in the industry
since Trump announced sweeping tariffs across the globe. Data from
CoinMarketCap shows that the market is down 8% at $2.43 trillion.
For instance, the top cryptocurrency, Bitcoin, has dropped 6% in the past day and by a similar margin in the last week, trading at $ 77,459. Other popular digital assets, XRP and Solana, have also declined 13% and 12%, respectively, in the past day.
Collapse or Comeback?
Meanwhile, CoinGlass data shows Ethereum open interest
falling 15% in the past day by $486 million, a sign that many speculative
positions have already been flushed out.
It is important to note that Ethereum’s price is currently at the oversold zone at 26. This means the price can reverse course
momentarily before any further downward momentum can be seen.
Short-term charts suggest ETH could test $1,424 or
even fall to the $1,000 level if support zones continue to give way. Yet the
market remains optimistic about a longer-term rebound. Ethereum’s role in decentralized finance, NFT infrastructure, and blockchain innovation still gives the token structural
strengths.
With sentiment turning bearish and traders eyeing
critical support levels, Ethereum’s next move will be crucial not just for its own trajectory but also for the wider crypto market.
This article was written by Jared Kirui at www.financemagnates.com.
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