Ethereum’s price has taken a sharp downturn, with technical analysis indicating a potential crash to $2,000. According to crypto analyst SwallowAcademy on TradingView, bearish signals are forming in smaller timeframes as buyers struggle to maintain support at $2,700. The broader market downturn over the past 24 hours has only reinforced the possibility of further declines for Ethereum.
The crypto market as a whole has suffered significant losses, with Bitcoin dropping below major support at $90,000 and experiencing a 6.9% decline in the same period. Ethereum, already struggling, fared even worse with a 12.6% plunge. The price broke below key support levels at $2,600, $2,500, and $2,400 in rapid succession.
This steep decline aligns with SwallowAcademy’s warning about Ethereum’s weakness on smaller timeframes, suggesting a potential drop to $2,000. Despite initially holding above the $2,700 support level, Ethereum’s price crash in the past 24 hours has caught many by surprise.
The market’s reaction to Bybit’s $1.5 billion hack over the weekend appears to have contributed to the uncertainty, with fear gradually creeping in among investors. Persistent outflows from crypto investment products, including Spot Bitcoin and Spot Ethereum funds, have added further downward pressure on Ethereum’s price.
The current Ethereum daily candle is dominated by sellers, indicating a significant shift from previous buying sentiment. If the selling momentum continues and the price drops below $2,200, the next major downside target is $2,000 before a potential bounce.
As of writing, Ethereum is trading at $2,395 and remains at risk of further declines. The RSI has not yet reached oversold conditions, suggesting that sellers may still have room to push prices lower before exhaustion sets in.
In conclusion, Ethereum’s price trajectory has taken a bearish turn, with a potential crash to $2,000 looming. Traders and investors should closely monitor the market dynamics and key support levels to gauge the direction of Ethereum’s price movement in the coming days.