Ethereum has experienced a massive drop, losing over 27% of its value in less than five days as the market faces extreme fear and uncertainty. The rapid sell-off has fueled speculation that a bear market could be on the horizon, with many analysts calling for further downside in the coming months.

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However, despite the overwhelming bearish sentiment, there is still a chance for Ethereum to recover as the price is now testing a crucial demand level. If bulls manage to hold this area, ETH could stage a strong rebound and shift momentum back in favor of buyers.

Top analyst BigCheds shared a technical analysis on X, noting that ETH is reapproaching a critical monthly demand level, which could define Ethereum’s next major move. Historically, price reactions at this level have led to either a strong bounce or further capitulation, making the current market conditions a pivotal moment for Ethereum’s long-term trajectory.

The next few days will be crucial as Ethereum attempts to stabilize and reclaim key price levels. If buyers step in aggressively, ETH could start a recovery rally, but failure to hold support may lead to further downside risks.

Ethereum Struggles Below $2,200

Ethereum is trading below $2,200, struggling to regain momentum after a severe market-wide correction. The altcoin sector continues to bleed, and ETH has now lost nearly 50% of its value since peaking at $4,100 in mid-December. Bulls face a critical test as they must defend key demand levels to prevent further selling pressure and attract strong buying interest.

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The situation is highly volatile, with market sentiment shifting toward extreme fear. Investors worry that Ethereum could continue its decline if bulls fail to hold support and initiate a meaningful recovery. Many analysts remain cautious, warning that ETH could enter a prolonged consolidation phase if it fails to regain lost ground.

BigChed’s insights on X highlight that Ethereum is now re-approaching a key high-timeframe demand zone of around $2,000. According to Cheds, this is a must-hold level—losing this zone could trigger a deeper correction, while a strong defense could pave the way for a potential recovery rally.

The next few days will be crucial for Ethereum. If bulls manage to reclaim $2,200 and push toward $2,500, a reversal could take place. However, failure to hold $2,000 could see ETH drop further, potentially testing lower demand zones in the coming weeks.

Price Testing Demand – Can Bulls Regain Control?

Ethereum is trading at $2,120 after enduring days of massive selling pressure that pushed the price to its lowest level in months. ETH is currently holding above a high-timeframe demand level around $2,000, a crucial zone that must be defended to avoid further downside. However, sentiment remains fragile, and if Ethereum fails to hold this level, it could trigger a dramatic sell-off leading to even lower prices.

Bulls face an urgent challenge to regain control of price action. The $2,200 level now acts as the first key resistance, and a breakout above this mark would be the first step toward stabilization. Beyond that, ETH must push above $2,500 as soon as possible to confirm a potential trend reversal and signal the start of a recovery rally.

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If bulls fail to hold the $2,000 support, Ethereum could face increased volatility and a steep decline, potentially testing lower demand zones. The next few trading sessions will be critical, as ETH’s ability to stay above key levels will determine whether the market stabilizes or enters a deeper correction phase in the coming weeks.

Featured image from Dall-E, chart from TradingView

Ethereum (ETH) has dropped nearly 10% in the past 24 hours, falling from $2,721 on February 24 to $2,313 earlier today. According to crypto analysts, $2,300 is the next critical support level – if ETH fails to hold this level, it could face further losses.

Ethereum Crashes Amid Crypto Market Sell-Off

The broader crypto market has endured a tumultuous 24 hours, shedding nearly 10% of its total market cap – approximately $300 billion in value. Amid the downturn, ETH’s market cap has plummeted from $340 billion to as low as $286 billion in just two days.

Crypto trader Merlijn The Trader shared their insights on ETH’s price action in an X post, noting that ETH is currently testing the 50-day Simple Moving Average (50 SMA) – a level they describe as the “make-or-break” zone for the asset.

The analyst emphasized the importance of ETH holding the $2,350 price level, warning that a breakdown below this level could get “ugly.” If Ethereum fails to maintain support, it could drop significantly, with the next major support level near $1,100.

Fellow crypto analyst Ali Martinez echoed Merlijn’s concerns, highlighting $2,300 as a crucial support level for ETH. According to the following 3-day chart, this level is near the bottom of the trading channel that ETH has been moving within since November 2024.

Meanwhile, Daan Crypto Trades pointed out that ETH has repeatedly failed to break through resistance at $2,800. They noted that after Bybit announced it would restore users’ ETH balances following the recent hack, ETH experienced a sell-off. They added:

This cycle, both $BTC & $ETH have reacted well around the .786 levels so I’m keeping an eye on this area here. BTC also just swept the range lows. The larger range between ~$2.1K-$2.8K remains the most important one. Anyways, currently just holding spot and not doing much.

Is The Altseason Dead?

ETH’s prolonged poor performance has cast doubt on the possibility of a full-blown altseason. For the uninitiated, altseason refers to a market phase where altcoins – cryptocurrencies other than Bitcoin (BTC) – deliver extraordinary returns in a short period.

While market sentiment surrounding ETH may be far from bullish at the moment, some industry leaders remain confident in a strong rebound for the leading smart contract platform.

In an X post, CryptoQuant CEO Ki Young Ju noted that there was no significant Ethereum selling pressure following the Bybit hack. He also suggested that favorable crypto regulations under US President Donald Trump could trigger a “large-cap ETF altseason,” potentially driving ETH’s price higher.

Similarly, crypto analyst Ted provided some optimism for altseason enthusiasts. Sharing the following weekly chart, Ted highlighted that the altcoin market cap has formed its first golden cross since Q1 2021. He added:

The last time this happened, Altcoin market cap pumped 500% in just a few months. It looks like altseason will soon become a reality. Do you bullieve?

That said, recent on-chain analysis does not inspire much confidence in ETH’s short-to-medium-term price action. At press time, ETH is trading at $2,418, down 9.5% in the past 24 hours.

Featured Image from Unsplash.com, Charts from X and TradingView.com

As the new week begins, Ethereum (ETH)—the second-largest cryptocurrency by market capitalization—has seen a significant decline, dropping nearly 10% below the critical support level of $2,500. 

However, amidst this downturn, prominent crypto analyst Doctor Profit has identified four compelling bullish indicators that suggest Ethereum may be poised for a resurgence, potentially inching closer to its all-time high and even surpassing it.

Key Indicators Signal A Bullish Turn

In a recent post on X (formerly Twitter), Doctor Profit shared insights from a detailed long-term analysis of Ethereum. He emphasizes that this evaluation is not about short-term hype or quick profits but focuses on the upcoming months. 

“Right now, ETH is the best opportunity in the market,” he stated, highlighting key indicators—technical, psychological, and on-chain—that support his bullish stance.

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Doctor Profit’s analysis is grounded in extensive price action data, with a focus on high-timeframe signals that typically indicate significant market moves. Here are the four major indicators he outlined:

The 200-week Exponential Moving Average (EMA) has historically served as a critical support level for Ethereum. During past market downturns, such as the COVID crash in 2020 and the bear market in 2022, the price has quickly rebounded after dipping below this key threshold.

Given that a few weeks ago, the price was merely 4% from this support, the risk-reward ratio for potential investment is compelling. Doctor Profit estimates a possible move toward the $8,000 to $10,000 range, representing an approximate 200% upside, while the worst-case scenario offers a mere 20% downside.

Doctor Profit Sees Potential For Major Ethereum Price Surge

The analyst further highlighted that ETH’s price has been trending within a long-term ascending channel, currently approaching its lower boundary—a historically favorable entry point for investors. 

Doctor Profit anticipates a breakout from this channel in the coming months, targeting the $4,000 mark, a level that has faced multiple rejections. 

However, the analyst assures that each failed attempt brings the Ethereum price closer to a definitive breakout, with potential targets reaching as high as $8,000 to $10,000.

One of the most significant patterns currently forming is the weekly ascending triangle. This pattern has been consolidating since 2020, indicating a robust bullish setup. 

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Doctor Profit notes that moves stemming from such patterns often lead to substantial price expansions, similar to recent trends observed in XRP. The implications of this formation suggest that Ethereum may be on the brink of a powerful upward movement.

A substantial liquidity zone exists around the $4,000 region, aligning perfectly with both the anticipated breakout from the ascending channel and the ascending triangle. 

This concentration of liquidity could facilitate a strong market response, according to the analyst, propelling Ethereum through this critical threshold and triggering a significant upward movement.

Despite the current bearish sentiment surrounding Ethereum, characterized by retail disinterest and high fear, Doctor Profit emphasizes that institutional accumulation is on the rise. 

Record inflows into Ethereum exchange-traded funds (ETFs) and significant on-chain withdrawals further indicate that larger investors are positioning themselves for future gains.

ETH is currently trading at $2,420, down as much as 10% over the past 24 hours and over the past week. 

Featured image from DALL-E, chart from TradingView.com