Ethereum recently broke a key support level at $2,200, reinforcing bearish market sentiment and sparking concerns about a potential drop to $1,250.
Introduction: Ethereum Risks
Ethereum has slipped below a key support level of $2,200, intensifying bearish sentiment in the market. This decline could lead to a drop to $1,250, aligning with historical support and Fibonacci retracement levels. If selling pressure persists, ETH could fall toward this target.
Current Situation Analysis
Analyst Ali Martinez highlights that Ethereum’s breakout from a parallel channel signals a potential decline to $1,250. Ethereum has already declined to $1,840. Analysts have identified crucial support zones at the $1,640 and $1,250 levels.
Potential Support Level Insight
According to Glassnode, Ethereum’s Cost Basis Distribution (CBD) has increased from 1.6 million to 1.9 million ETH at the $1,886 level. This could potentially offer temporary support, while fear-driven selling by long-term holders may create favorable accumulation conditions.
With ongoing selling pressure, Ethereum faces further losses if it fails to uphold critical support levels. Nevertheless, data suggest potential accumulation opportunities ahead.
