The crypto market sentiment took a bearish turn recently as major assets like Ethereum (ETH) and Bitcoin (BTC) experienced significant price drops in the past 24 hours. Ethereum, in particular, saw a 7% price decrease, bringing it to a crucial level of $1,820, which now poses a make-or-break situation for the asset.
Expert technical analysis suggests that Ethereum is currently testing the $1,820 level for the second time this month and showing signs of weakness. If the asset fails to hold this level and closes below $1,800, there is a high probability of a further decline of around 18% to reach the $1,490 mark in the near future.
On a weekly timeframe, Ethereum is already in a downtrend, trading below the 200 Exponential Moving Average (EMA) on the daily chart. Despite showing some upside momentum earlier in March 2025, Ethereum has now retested its breakdown level and is teetering on the brink of a significant price drop. If the current pattern continues, Ethereum could potentially drop to $1,200 or even lower.
As of the latest update, Ethereum is trading near $1,870 after a 7% decline in the past 24 hours. The trading volume has seen a 50% increase during the same period, indicating heightened activity from traders and investors.
Despite the rise in trading volume, Ethereum traders remain bearish, in line with the overall market sentiment. On-chain analytics firm Coinglass reports that traders holding short positions are over-leveraged at $1,925, with $391 million worth of short bets at this level. Conversely, long positions are over-leveraged at $1,855, with $120 million worth of long bets.
This data suggests that bears are currently dominating the market, with a potential to liquidate long positions and drive Ethereum’s price lower in the coming days. Traders and investors need to closely monitor the $1,820 level as it holds the key to Ethereum’s future price movement.