Key Insights:
- Ethereum breached $1,800 support, creating a 24-hour low at $1,754, signaling potential further correction to $1,500.
- Ethereum whales face liquidation risk with 125,603 ETH worth $229M, triggering potential acceleration of the downtrend.
- A double-bottom reversal could occur if Ethereum breaks above local resistance, potentially reaching resistance at $2,300.
Ethereum (ETH) price recently dipped below the $1,800 support level. This breach has heightened uncertainty surrounding future market trends.
ETH price hit a 24-hour low of $1,754 recently. Analysts now foresee a possible downward trend toward $1,500.
Despite bearish market conditions, a double-bottom reversal pattern is emerging. This pattern could push Ethereum price toward the $2,300 mark.
Ethereum Price Breached the $1,800 Support
ETH price action continues to capture market interest because it crossed below the $1,800 support zone. In the last 24 hours, the cryptocurrency’s price touched a low of $1,754 before recovering slightly.
The price of Ethereum has declined. Analysts speculate it may test the critical support boundary at $1,500. Ethereum has fallen below $1,800, marking a key trading threshold. Investors are watching closely to see if it stabilizes or continues to drop.
Ethereum price movement inside this range specifies the market’s future path toward price recovery versus extended downward movement.
Liquidation Risk Could Exacerbate the Downtrend
More so, the downward movement of Ethereum price increases the likelihood of notable liquidations against large holders. Data from Lookonchain reveals two major whales on Maker DAO. Together, they hold 125,603 ETH, which is valued at about $229 Million.
Whales are nearing liquidation as ETH price approaches the $1,787 and $1,701 thresholds. If the downtrend persists, their positions may be forced to liquidate.
Ethereum price may decrease further because large-scale ETH sales from potential forced liquidations create additional selling pressure on the market. The bearish market sentiment may intensify, driving Ethereum to lower price support points, possibly reaching around $1,500.
In addition, the crypto’s price volatility stems directly from whale positions in the short-term market. Large shareholders approaching their liquidation thresholds create pressure through their positions that affect market price movements.
ETH Price Potential Recovery
ETH price at the $1,785 support zone hints at a possible double-bottom reversal pattern. This signaled a potential shift from its bearish trend. If confirmed, this pattern could pave the way for a bullish recovery.
This bullish indicator helps transform negative market sentiment into upward price momentum. A double-bottom pattern forms from two price lows after a bounce.
It occurs when the price retracts to matched support levels. This leads to an upward shift that breaks through resistance levels. Ethereum price trading at $1,785 showed buying activity, potentially setting up for a reversal.
Completing the double-bottom pattern requires Ethereum to exceed its local resistance trendline. This currently restricts price movements within the downward channel.
A rise beyond the resistance level may allow Ethereum to test upper resistances. It may also push ETH price toward $2,300.
According to crypto analyst Jonathan Carter, there exists a possibility for a bullish recovery despite ongoing sell-offs. Carter noted that Ethereum had reached the support line within an upcoming descending triangle pattern.
Ethereum price rejection at $1,800 might trigger a rebound that aims for $1,950 and $2,080. The analyst Carter now foresees price movements towards $2,230 and $2,320.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions
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