Ethereum's price near $2,000 is challenging for large investors such as a whale on the Maker platform. Current conditions may force a liquidation.
Ethereum Under Pressure
Ethereum trades at $2,034.29, with a daily drop of 2.81%. The market shows a significant decline below a $2,091 resistance level, reducing the total market value to $245.34 billion. However, trading volume rose by 188.13% to $29.06 billion.
Investors Anticipate Recovery
Analysis suggests Ethereum might recover near key support around $2,095. These support-resistance zones play critical roles in market price movement. Technical indicators suggest Ethereum could rebound from this area with the potential to reach $2,700.
Further Decline Risks
However, charts show a downtrend channel since November. Ethereum peaked several times at $3,800, but now demonstrates lower lows, indicating bearish sentiment. There is potential for further downward pressure to $1.9K due to an RSI reading of 35.21, indicating oversold conditions.
The decline in Ethereum's price may increase the market supply through large-scale liquidations, further reducing prices and impacting the DeFi sector.
