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Ethereum warns of a potential downfall to $1,897 as sellers are on the verge of breaching the $2,000 bullish support.
As Bitcoin dropped to nearly $80,000, Ethereum is back to retest its $2,000 psychological support. With a 24-hour low at $1,988, Ethereum is fluctuating close to the $2,000 mark.
Currently, Ethereum trades at a market price of $2,062 with an intraday recovery of 2.12%. Will this short-term intraday recovery help Ethereum overcome the recent 8% crash? Let’s find out.
Ethereum Targets $1,897 After 20% Drop Last Week
Amid the recent market crash, liquidations in Ethereum long positions have risen to $230 million. This massive pullback has shaken out multiple over-leveraged traders.
Currently, Ethereum is struggling to find support near the $2,000 psychological level. The falling Ethereum price has registered a nearly 20% drop from last week. It builds upon a 10% pullback the week before.
Amid the intense pullback, Ethereum has breached the 61.80% Fibonacci level at $2,235. After a retest, the Ethereum price is now hinting at a potential retest of the 78.60% level at $1,897.
Dogecoin Price ChartAs $ETH prices hover near $2,000, momentum indicators show minimal chances of a bullish recovery. The MACD and signal lines are trending negatively, but the declining bearish histograms suggest a potential bullish crossover.
Furthermore, the daily RSI line indicates a bullish turnaround as it fluctuates near the oversold boundary, highlighting a bullish divergence.
$ETH Price Target
Based on the Fibonacci levels, a closing below the 78.60% level could bring Ethereum down to the $1,540 mark. However, a crucial horizontal support level at $1,750 may provide early support.
On the bullish side, the 61.80% Fibonacci level at $2,235 serves as the immediate critical resistance.
Will Ethereum Bounce Back as Reserve on Exchanges Decline?
During the recent Ethereum crash, Ali Martinez highlighted significant outflows from crypto exchanges. In a recent X post, the analyst noted that over 600,000 $ETH had left the exchanges.
This reduced the Ethereum exchange reserve from 19.20 million $ETH to 18.60 million $ETH. The declining exchange reserve points to a short-term decrease in $ETH supply, which could help limit the downside and fuel the next recovery rally.
Over 600,000 #Ethereum $ETH have been withdrawn from crypto exchanges in the past week! pic.twitter.com/oPmLi4lxTw
— Ali (@ali_charts) March 10, 2025