Ether’s 20% Slide Shatters Key Support, Hinting at Deeper Losses

Ethereum’s native cryptocurrency, Ether (ETH), has suffered a major technical breakdown, slipping below a critical support trendline that had held strong since the market crash following Terra’s collapse in 2022.

ETH plunged nearly 20% in the seven-day period ending March 9, marking its steepest weekly drop since November 2022, according to TradingView data.

The breach of this long-standing trendline, which originated in mid-2022, suggests that Ether’s nearly three-year bullish cycle may have come to an end. Market analysts now warn of further downside, with potential support emerging near the September-October 2023 lows around $1,500.

Trendline Breach Signals a Shift in Market Sentiment

Trendlines are key indicators of investor sentiment, helping traders identify potential price movements. A long-term ascending trendline typically represents strong demand, but once broken, it signals a weakening bullish trend and growing selling pressure.

With ETH now trading below this critical support level, bearish momentum may continue to build, triggering additional sell-offs as traders adjust their positions.

Key Price Levels to Watch

In addition to the trendline breakdown, ETH has also lost support at the $2,100 level, a zone where buyers had repeatedly stepped in since August. This double breakdown suggests further downside risk.

If selling pressure persists, Ether could decline toward $1,500. To regain bullish momentum, the price must reclaim last week’s high of $2,523, which now acts as a key resistance level.