Ethereum Warns of Potential Downfall to $1,897 as Sellers Approach $2,000 Support
As Bitcoin dropped to nearly $80,000, Ethereum is testing its $2,000 psychological support. With a 24-hour low at $1,988, Ethereum hovers near this benchmark.
Currently, Ethereum trades at a market price of $2,062 with an intraday recovery of 2.12%. Will this temporary uptick help Ethereum overcome its recent 8% crash? Let’s see.
Ethereum Targets $1,897 Following a 20% Drop Last Week
Amid the recent market turmoil, liquidations in Ethereum long positions surged to $230 million. This major drop has shaken many over-leveraged traders.
Ethereum is currently struggling to maintain support around the $2,000 psychological threshold. The price has faced a nearly 20% drop from last week, which follows a previous 10% decrease.
During this significant downturn, Ethereum breached the 61.80% Fibonacci level at $2,235. After a retest, Ethereum’s price hints at a potential test of the 78.60% level at $1,897.
As ETH prices hover close to $2,000, momentum indicators suggest limited chances for a bullish recovery. The MACD and signal lines are trending negatively, though declining bearish histograms indicate a possible bullish crossover.
Moreover, the daily RSI indicates potential bullish momentum as it approaches the oversold threshold, showcasing a bullish divergence.
ETH Price Target
According to Fibonacci levels, a closing below the 78.60% level could drop Ethereum to around $1,540. However, a significant horizontal support level at $1,750 may offer preliminary support.
On the upside, the 61.80% Fibonacci level at $2,235 remains a critical resistance level.
Will Ethereum Recover as Exchange Reserves Decline?
During the recent Ethereum downturn, analyst Ali Martinez pointed out notable outflows from crypto exchanges. In a recent post on X, he mentioned that over 600,000 ETH had exited exchanges.
This has reduced the Ethereum exchange reserve from 19.20 million ETH to 18.60 million ETH. The decline in exchange reserves suggests a short-term reduction in ETH supply, which could help mitigate losses and potentially propel the next recovery rally.
> Over 600,000 #Ethereum $ETH have been withdrawn from crypto exchanges in the past week! pic.twitter.com/oPmLi4lxTw
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> — Ali (@ali_charts) March 10, 2025
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