Ethereum, the second-largest cryptocurrency, recently reached a new yearly low of $2,070, the lowest since January 1, 2024. This 7.40% drop on the day led to over $200 million in liquidations.
Current State of the Ethereum Market
On February 28, ETH price decreased by 24.50% over the past seven days, marking its worst weekly performance since 2022. A weekly close below $2,300 would be its lowest since November 2023.
Graphical Analysis and Forecasts
Graphical data suggests that ETH is likely to close below the 200-weekly exponential moving average (EMA), indicating a continuation of the downward trend. Historically, ETH closed under the 200-weekly EMA only 14.55% of the time. The range between $2,000 and $2,100 is crucial as breaking below signals a double-top formation.
Cost-Basis Distribution and Demand Zones
Glassnode data indicates a cost-basis distribution (CBD) price of $1,890, which could become a target for ETH should more declines occur. Travis Morin notes that the demand zone for ETH lies in the range between $2,100 to $1,900.
While Ethereum continues its decline, key levels and analytical forecasts may assist investors in decision-making. The market remains pressured, yet these levels could attract new buyers.
