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Ethereum is still under significant bearish pressure, with the possibility that the downward trend might continue in the coming days or weeks as the market struggles to recover. After dropping sharply over the last few days, ETH may have finally reached that crucial moment that could trigger a significant upward surge.

A Strong Rally To New Highs On The Horizon For Ethereum?

During negative market conditions, Ethereum, the second-largest crypto asset, tends to decline along with other major digital assets like Bitcoin and Solana. ETH’s price has now fallen below $2,000 once again, raising uncertainty about a short-term upside breakout and reversal.

However, seasoned market expert and investor Trader Tardigrade points to a bullish development on the ETH’s chart that could lay the groundwork for a rebound and a rally. His prediction suggests that ETH is gearing up for a significant recovery as the altcoin enters a crucial oversold zone.

With Ethereum trending in an oversold zone, this implies that selling pressure may have reached exhaustion, which could pave the way for buying pressure. Once buying pressure returns, a new wave of optimism will be introduced to the market, increasing the likelihood of another rally.

According to the analyst, Ethereum has entered the oversold zone on the Stochastic indicator in a 3-year span. Besides determining overbought and oversold conditions, the key indicator is also used to gauge trend reversals and divergences.

Considering the development, Trader Tardigrade believes that the altcoin may have reached the bottom at the current level. Historically, ETH has seen notable growth from the bottom, as seen in the monthly chart. The chart shows a similar trend in 2019 and 2022, in which each cycle spurred a strong rally.

These past scenarios provide more confirmation of Trader Tardigrade’s upsurge expectation. Should it mirror previous trends, the analyst foresees a move toward new all-time highs, mainly targeting the $11,500 mark. Many crypto experts have predicted that ETH’s path to the $10,000 milestone and beyond is programmed and natural.

ETH’s Upside Momentum Hinges On This Key Area

Ethereum is witnessing another day of bearish movement as its price loses the $1,900 support level. Delving into ETH’s current price action, Ali Martinez, a crypto expert and trader, has predicted the next possible move for the altcoin using the Market Value to Realized Value (MVRV) Pricing Bands.

After examining the MVRV Extreme Deviation Pricing Bands metric, Ali Marinez highlighted that ETH is testing key support levels that are crucial for its next move. If the realized price of $2,060 fails to hold, Martinez noted that the next significant support is located at $1,440, suggesting a potential deeper decline in ETH’s price.

At the time of writing, Ethereum was trading at $1,892, displaying a 0.30% drop in the last 24 hours. With ETH falling below the $1,900 mark, bearish sentiment has risen around the asset, as evidenced by a more than 37% decrease in its daily trading volume.

Featured image from Unsplash, chart from Tradingview.com

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Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has experienced renewed downward pressure amid a widespread market crash. After reaching a mid-December high of $4,107—still below its November 2021 all-time high of $4,868—ETH slipped below $1,800, marking a 53% drop from its December peak. But while traders scramble to assess the depth of this current downturn, a new on-chain development has momentarily stolen the spotlight.

Is It Really The Ethereum Foundation?

A transaction flagged by on-chain analytics service Lookonchain raised alarms this week, suggesting an alleged liquidation risk for the Ethereum Foundation (EF). Lookonchain reported via X: “A wallet suspected to be Ethereum Foundation deposited 30,098 ETH ($56.08M) to Maker to lower the liquidation price 5 hours ago. Currently, this wallet has 100,394 ETH ($182M) on Maker, and the liquidation price is $1,127.06.”

The magnitude of the transaction—reportedly worth $56.08 million in ETH deposits—sparked widespread speculation about EF’s potential exposure. Lookonchain’s data implied that 30,098 ETH (approximately $182 million) was being used to back a MakerDAO vault with a liquidation threshold hovering around $1,127, a pivotal level givenETH’s recent price crash.

Chinese crypto news outlet Wu Blockchain was among the first to circulate the story. However, shortly thereafter, Wu Blockchain offered a clarification based on analytics from Arkham Intelligence.

The updated analysis indicates that the wallet’s connections to the Ethereum Foundation may have been overstated. The address, it appears, belongs to an early ETH investor who once interacted with EF’s official wallets but has since managed funds independently. The deposit of 30,098 ETH was presumably a strategic move to shore up collateral and lower the MakerDAO vault’s liquidation price during a market downturn.

Wu Blockchain noted via X: “Correction: Although 0x22…1246 was flagged by Arkam as a suspected Ethereum Foundation address, on-chain data confirms otherwise. While this address received a 4M DAI transfer from the Ethereum Foundation ETH Sale in May 2022, its transaction behavior and initial ETH funding trace back to jonny.eth (0xb76), indicating that it is more likely an early ETH investor rather than the Foundation itself. This address deposited 30,098 ETH into the MakerDAO vault today, with an outstanding debt position of 78,035,224.7182 DAI.”

While the liquidation price remains $1,127—a level that some observers believe could be tested if market pressures persist—there is currently no official evidence linking the vault to the Ethereum Foundation. Consequently, rumors of an EF liquidation seem to be unfounded, given the clarifications brought forth by Wu Blockchain based on Arkham data.

At press time, ETH traded at $1,925.

Featured image created with DALL.E, chart from TradingView.com

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Ethereum (ETH) has officially lost the $2,000 mark, trading below this key level for the first time since 2023 and reaching its lowest point since October 2023. The price plummeted as low as $1,750, marking a dramatic drop from its December 2024 high of $4,100. This staggering 57% decline has created a difficult environment for bulls, as Ethereum struggles to find stability amid growing selling pressure.

The broader crypto market downturn, driven by macroeconomic uncertainty and risk-off sentiment, has left ETH in a vulnerable position, with traders unsure whether a bottom has formed or if further downside is ahead. The sharp decline in Ethereum’s value has intensified bearish sentiment, making it one of the worst-performing major altcoins over the past few months.

According to Glassnode data, Ethereum is testing key levels below $2,000 and above $1,800 based on the MVRV Pricing Bands. Historically, this range has acted as a major support zone, and its ability to hold will be critical in determining Ethereum’s short-term price direction. If ETH fails to stabilize, the market could be in for another wave of selling, potentially pushing prices even lower.

Ethereum Tests Critical Support As Market Struggles

The entire crypto market has suffered a major breakdown, mirroring the decline in U.S. stock markets as trade war fears and uncertainty surrounding U.S. President Trump’s policies weigh heavily on investor sentiment. Macroeconomic instability and volatility have been the primary market drivers since the U.S. elections in November 2024, and current conditions suggest that this trend is far from over.

Rising global trade war concerns and erratic decision-making by the U.S. administration have further fueled fear and uncertainty, sending the U.S. stock market to its lowest levels since September 2024. This risk-off environment has translated into increased selling pressure across the crypto market, with Ethereum (ETH) struggling to hold critical support levels.

Top analyst Ali Martinez shared insights on X, highlighting that Ethereum is now testing key levels based on the MVRV Pricing Bands. According to on-chain data, ETH’s Realized Price currently sits at $2,060, a level that has acted as crucial support in previous cycles. If Ethereum fails to hold above this mark, the next major downside target is around $1,440, which would represent a substantial drop from current levels.

With market conditions still fragile, the next few trading sessions will be crucial in determining Ethereum’s short-term trajectory. If ETH can hold above $2,060, it may have a chance to stabilize and attempt a recovery. However, if selling pressure intensifies, the market could see Ethereum test significantly lower price levels, adding to the growing uncertainty among investors.

ETH Struggles Below $2,000

Ethereum is currently trading at $1,900, following days of heavy selling pressure that have led to significant losses. ETH has failed to hold key levels, with the price dropping as low as $1,750 just a few hours ago, marking one of its lowest points in months. With the market under continued bearish control, bulls are now racing to reclaim the $2,000 mark in an effort to stabilize price action and shift momentum toward a potential recovery phase.

For Ethereum to regain strength, it must hold above current levels and push past $2,000 quickly. A break above this key resistance zone would indicate renewed buying interest, reducing selling pressure and allowing ETH to attempt a more sustained recovery. However, if ETH fails to reclaim $2,000, the market is likely to see a continuation of the downtrend, with further declines expected.

With Ethereum in a fragile position, the next few days will be crucial in determining whether bulls can step in to reverse the trend or if ETH will slide into deeper correction territory. Traders are closely watching price movements, as Ethereum remains at risk of further downside if key levels are not regained.

Featured image from Dall-E, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.