The cryptocurrency market has recently seen a significant dip, with Ethereum’s price dropping below the critical $1,800 support level. The market slumped to an intraday low of $1,754 as investors closely watched major support and resistance levels. Analysts speculate that Ethereum’s future trajectory will depend on whether the price continues to consolidate or retraces lower.
Over the past few days, Ethereum’s price trend has displayed a series of bearish candles, reflecting a 12% decline. However, the price action has rebounded on the S1 pivot support at $1,762, a significant zone where the price had previously rebounded. Analysts suggest that Ethereum’s performance around this level could dictate the next substantial price shift.
Crypto General, a well-known market analyst, has indicated that Ethereum’s price is forming a base at $1,800. If this support fails, the top altcoin’s price could potentially drop to $1,500. However, if the price rebounds above $2,000 levels, the bullish trend is expected to resume. This level has historically been a psychological threshold for Ethereum traders.
The current price drop has elevated the liquidation risks for large Ethereum investors. On-chain data from LookOnChain reveals that two large whales on MakerDAO are holding Ethereum near liquidation levels. These whales collectively hold 125,603 ETH, valued at approximately $229 million.
Should the Ethereum price fall further, more liquidations could occur, thus increasing selling pressure. This could potentially drive Ethereum’s price even lower, prolonging the ongoing correction phase.
Despite the recent bearish trend, analysts have identified a potential double-bottom pattern forming on Ethereum’s price daily action. The double-bottom reversal pattern indicates the end of a bearish phase as the price moves upwards. This prediction could come to fruition if Ethereum maintains a position above the $1,762 support and retests the $2,100 resistance level.
Jonathan Carter, a crypto analyst, observed that Ethereum’s price appears in a descending triangle. If the price remains above the support level, a breakout could result in a price rise to $1,950 and potentially $2,080. Carter set his price targets to $2,230 and $2,320 should bullish momentum strengthen.
However, the $2,100 resistance level remains a critical hurdle for Ethereum’s potential recovery. If Ethereum manages to consolidate above this level, it could signal a fresh buying opportunity. Analysts emphasize that Ethereum must hold above this level to confirm the accumulating double-bottom formation.
On the contrary, if prices fail to sustain above $1,762, a bearish continuation is likely. If the price dips below $1,700, Ethereum’s price is expected to revisit the $1,500 level, aligning with Crypto General’s forecast that set $1,500 as the next key support level if bearish pressure continues.
