Ethereum (ETH) continues failing to reclaim the $2,100 resistance, dropping 6% in the past week. As the second largest crypto trades within its “make or break” levels, some market watchers suggest it will continue to move sideways before another major move.

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Ethereum Trades At 2023 Levels

After closing its worst Q1 since 2018, Ethereum continued moving sideways, hovering between the $1,775-$1,925 price range. Amid last Monday’s recovery, Ethereum traded only 6% below its monthly opening, eyeing a potential positive close in the monthly timeframe.

Nonetheless, the cryptocurrency fell over 10% from last week’s high to close the first quarter 45.4% below its January opening and 18.6% from its March opening. Moreover, it registers its worst performance in seven years, recording four consecutive months of bleeding for the first time since 2018.

Daan Crypto Trades noted that ETH is “still trading in no man’s land” despite its recent attempts to break above its current range. In early March, Ethereum dropped below the $2,100 mark, losing its 2024 gains and hitting a 16-month low of $1,750.

The trader suggested that the crucial levels to watch are a breakdown below $1,750 or a breakout above $2,100. “Anything in between is just going to be a painful chop,” he added.

Another market watcher, Merlijn The Trader, highlighted that ETH is at 2021 levels, pointing that it is trading within the breakout zone that led to Ethereum’s all-time high (ATH) but has stronger fundamentals and more institutional demand four years later.

“ETH is sitting on the same monthly support that ignited the 2021 bull run. Hold it, and $10K is in play. Lose it… and things get ugly,” he detailed.

More Chop Before ETH’s Next Move?

Analyst VirtualBacon considers that Ethereum will continue to trade within its current price range for the time being. He explained that ETH’s price has fallen to retest the last bear market resistance levels, as it has erased all its gains since November 2023.

The analyst considers this zone a “good value range” but doesn’t expect the cryptocurrency to break out “right away.” However, he added that a bullish breakout is “simply a matter of time” in longer timeframes.

“Ethereum always catches up when the Fed pivots and the global liquidity index beings to uptrend. That’s when you see the ETH/BTC ratio start to turn up again, leading the rest of the altcoin market,” he concluded.

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Ali Martinez pointed out that the number of large ETH transactions has significantly declined in over a month, dropping 63.8% since February 25.

During this period, large transactions fell from 14,500 to 5,190, signaling a drop in whale activity on the network. He also noted that whales have sold 760,000 ETH in the last two weeks.

As of this writing, Ethereum trades at $1,903, a 6% drop in the weekly timeframe.

Featured Image from Unsplash.com, Chart from TradingView.com

Crypto analyst Klejdi has indicated that Ethereum’s pain is far from over, with the second-largest crypto by market cap set to suffer a further downtrend. Specifically, he warned that ETH could still drop to as low as $1,400 before it finds a bottom. 

Ethereum May Still Drop To As Low As $1,400

In a TradingView post, Kledji stated that Ethereum may drop to $1,400, providing a bearish outlook for the altcoin, which has underperformed other top cryptocurrencies. The analyst noted that ETH lost nearly 12% of its value within just three days after breaking out of its recent pattern last Friday.  

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He further mentioned that Ethereum’s movement and the rest of the crypto market are closely tied to Bitcoin. As such, this ETH crash is likely to happen, seeing as the flagship crypto has dropped to $81,300 and is already showing signs of further decline. 

Klejdi highlighted in his accompanying chart that ETH will likely consolidate near its current level before continuing to move lower. However, the chart showed that the move to this $1,400 target will likely happen this month. 

In the meantime, the analyst believes it would be wise to wait for Ethereum’s price to form another bearish pattern before entering a trade. He again reaffirmed that there is a strong possibility that ETH may extend its drop to $1,400. 

Ethereum whales are already capitulating ahead of this projected price crash. Onchain analytics platform Lookonchain revealed an ETH OG that has sold off all its holdings. This investor bought 5,0001 ETH while trading at $277 in 2017 and didn’t sell when the altcoin hit its ATH during the last bull run. The whale started selling last month, possibly giving up on Ethereum making a comeback anytime soon. 

ETH Will Still Reach New Highs

Crypto analyst Virtual Bacon is still confident that Ethereum will reach new highs. He noted that ETH is back at its key bear market breakout zone, retesting the $1,700 and $2,100 range. He predicts that the altcoin will continue to chop around this range in the short term. However, he remarked that Ethereum tends to catch up fast once the US Federal Reserve pivots and global liquidity turns. 

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Crypto analyst Crypto Patel affirmed that Ethereum’s biggest run is coming. He stated that Q2 to Q4 of this year will be life-changing for ETH. The analyst added that this could be the cycle top window and advised market participants not to miss it. Crypto Patel advised that they should accumulate between $1,900 and $1,300 with the target of between $7,000 and $10,000 in mind. 

At the time of writing, the Ethereum price is trading at around $1,850, up in the last 24 hours, according to data from CoinMarketCap.

Featured image from iStock, chart from Tradingview.com