Ethereum has fallen below $1,800, sparking concerns about potential further losses. Technical indicators suggest a possible bottom formation, and traders are closely watching the price action.
Selling Pressure: Whale Liquidation
Ethereum's price dropped by 12% over the past week, showing multiple negative daily charts. The price is currently testing the $1,762 support level, which previously acted as a reversal point in early March. A Doji candle has appeared at this level, signaling possible trend exhaustion. Large Ethereum holders sold 760,000 ETH tokens over the past two weeks, contributing to the price weakness. The decline in large transactions has reduced market liquidity and price stability.
Ethereum's Market Position Weakens
The performance correlation between Ethereum and Bitcoin has shown significant decline. Ethereum is down 46% year-to-date, while Bitcoin has seen a smaller 10% drop. Ethereum's dominance in the DeFi ecosystem has also declined, with its TVL at $50.68 billion, accounting for 52.76% of the total DeFi market, down from 61.64% in February. Meanwhile, Solana has gained traction, reaching 7.24% of the TVL, surpassing $6.69 billion.
Potential Price Recovery
Analysts indicate a potential for Ethereum to stabilize its price in the near future, provided it remains above the $1,762 support level. This could lead to a potential recovery toward $1,950 and further to $2,080. However, a drop below $1,700 might trigger further selling, pushing Ethereum toward $1,500, setting the stage for recovery.
Ethereum faces significant challenges amidst declining market share and selling pressure from large token holders. Despite these difficulties, technical analyses point to a potential recovery if key resistance levels are broken. Investors continue to closely monitor the market situation, hoping for a favorable outcome.
