Ether Prices Drop Significantly

Prices of ether (ETH), the native token of Ethereum’s blockchain, fell almost 20% in the seven days to March 9, registering their biggest weekly percentage slide since November 2022, according to data from TradingView.

The sell-off has penetrated a bullish trendline that started with the low registered after the June 2022 crash of Terra’s algorithmic stablecoin, UST, which destroyed billions in investor wealth.

The decisive breakdown suggests that ether’s nearly three-year-long bullish trend has likely ended, shifting focus to potentially deeper losses, particularly to support levels identified around the September-October 2023 lows of near $1,500.

Understanding Trendlines

Trendlines help visualize the direction in which traders allocate funds and indicate where price movements may occur. An ascending or bullish trendline represents levels where demand is expected to be sufficient to prevent further price declines.

When a prolonged bullish trendline is breached, as seen with ETH, it signals a weakening of demand or that sellers are overpowering buyers, indicating a potential bearish shift in market trend. This breakdown often prompts other traders to sell, leading to even deeper losses.

Ether’s nearly 20% drop took out dual support levels—the trendline and the area around $2,100—which has characterized repeated seller exhaustion since August.

The next support is observed at $1,500, with the past week’s high of $2,523 being a level for the bulls to overcome.