thecoinrepublic.com
Ethereum price has fallen below the critical $1,800 support level. The price fell to an intraday low of $1,754, as the market kept looking at major support and resistance levels.
Analysts believe that the $ETH price direction would depend on whether it will continue consolidating or retrace lower.
Ethereum Price Tests Key Support at $1,762
Ethereum price trend over the past few days shows a series of bearish candles, reflecting a 12% decline.
Price action has bounced on the S1 pivot support at $1,762 which is a very critical zone in which the price has previously rebound. Analysts highlight that Ethereum’s movement around this level could determine the next major price shift.
Crypto General, a well-known analyst, has pointed out that Ethereum price is forming a base at $1,800. If this support fails, the top altcoin’s price could drop to $1,500.
For instance, if the price bounces back above $ 2000 levels, then the bullish trend is expected to resume. This level has been considered as a psychological level to Ethereum traders in the past.
Whales Face $229M Liquidation Risk
The current price drop is making liquidation risks even higher now for large Ethereum investors. According to on-chain data from LookOnChain, two large whales on MakerDAO are holding Ethereum near liquidation levels. These whales collectively hold 125,603 $ETH, valued at approximately $229 million.
According to LookOnChain, the liquidation prices were around $1,787 and $1,701.
However, if Ethereum price falls further, more liquidations could occur with increased selling pressure. This could take $ETH price even lower, extending the ongoing correction phase.
Ethereum’s Double-Bottom Reversal Potential
Despite the recent bearish trend, analysts see a possible double-bottom pattern forming on $ETH price’s daily action.
Double-bottom reversal pattern signifies the end of a bearish phase as the price moves upwards. This projection can only materialize if Ethereum price maintains a position above $1,762 support and retest the $2,100 resistance level.
Jonathan Carter, a crypto analyst, noted that $ETH price appears in a descending triangle.
In his analysis, if the price remains above the support level, a breakout could lead to a price rise to $1950 and eventually $2080. Carter kept his price targets to $2,230 and $2,320 if bullish momentum strengthens.
$ETH Price Must Reclaim $2,100
The $2,100 resistance level remains a critical barrier for Ethereum’s potential recovery. If Ethereum price manages to consolidate above this level, it can be a fresh buying signal.
Analysts stress that Ethereum has to hold above this level to confirm the accumulating double-bottom formation.
However, if prices fail to sustain above $1,762, the prospect of bearish continuation looms. Consequently, if the price goes below $1,700, $ETH price will probably revisit the $1,500 level. This would fall in line with Crypto General’s outlook that pegs $1,500 as the next key support level if bearish pressure persists.