Ethereum's price has dropped below the critical $1,800 level, sparking interest in key support and resistance levels.
Ethereum Tests Key Support
Ethereum's price trend over the last few days shows a series of bearish candles, reflecting a 12% decline. Price action has bounced on the S1 pivot support at $1,762, a critical zone where the price has previously rebounded. Analysts emphasize 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.
Whale Liquidation Risk
The current price drop increases the liquidation risks 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. The liquidation prices were around $1,787 and $1,701. Further drops in Ethereum price could lead to more liquidations, increasing selling pressure and potentially more declines.
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. A double-bottom reversal pattern signifies the end of a bearish phase as the price moves upwards. This projection can materialize if Ethereum price maintains a position above $1,762 support and retests the $2,100 resistance level. Analyst Jonathan Carter noted that ETH appears in a descending triangle. If the price remains above the support level, a breakout could lead to a price rise to $1,950 and eventually $2,080.
The $2,100 resistance level remains a critical barrier for Ethereum’s potential recovery. If Ethereum manages to consolidate above this level, it can be a fresh buying signal. However, if prices fail to sustain above $1,762, the prospect of bearish continuation looms.
