Ethereum (ETH) hit a new yearly low of $2,076 earlier today, further weakening sentiment around the second-largest cryptocurrency by market cap. If Ethereum falls below $2,000, it could trigger additional losses for investors.

Ethereum Sentiment At A 12-Month Low

According to data from CoinGecko, Ethereum has dropped roughly 28% over the past 30 days and is currently trading around the $2,200 level. The cryptocurrency has shed more than $230 billion in market capitalization since December 2024.

Crypto investment manager 0xLouisT took to X to share a chart indicating that sentiment around Ethereum is at its lowest point in a year. A drop below $2,000 could intensify bearish sentiment, putting further pressure on ETH.

Similarly, Bitcoin (BTC) trader and investor Jason Pizzino remarked that ETH could be “in more trouble than expected” if it closes below the $2,000 to $2,100 range. He added:

Remember, February was when most influencers were beating the drum for $ETH and told us to “follow the money” because Trump et al., were buying millions of dollars. That always sounds fishy to me.

A close below $2,000 would complete a bearish double-top pattern on the monthly chart, potentially sending ETH into the low $1,000 range. For context, the last time Ethereum traded in the $1,500 range was in October 2023.

Fellow crypto analyst Morin highlighted ETH’s weekly demand level between $1,900 and $2,100, with the weekly supply zone positioned around $2,600. The analyst expects the digital asset to fluctuate within this range “in the near future.”

Some Positive Signs For ETH

While the short-term outlook for ETH appears uncertain, some indicators suggest that investors have not completely lost confidence in the asset. For instance, using on-chain data, crypto analyst Ali Martinez emphasized that large holders – also known as crypto whales – have bought more than 110,000 ETH in the last 72 hours. 

Similarly, Leon Waidmann, Head of Research at Onchain Foundation, pointed out that despite ETH’s price decline, exchange reserves continue to drop. Waidmann noted that falling exchange reserves indicate investor confidence, as fewer ETH tokens are being moved to exchanges for potential selling.

However, concerns remain for Ethereum, particularly as the network’s staking percentage has seen a sharp decline from its peak in November 2024. On the other hand, crypto analyst Ted Pillows remains bullish, predicting that ETH is still on track to surpass $10,000. At press time, ETH is trading at $2,222, down 3.6% in the past 24 hours.

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

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