Bears Take Control as Ethereum Nears $2,000

Ethereum is testing the $2,000 psychological mark as Bitcoin is down at almost $83,000. As bulls abruptly surrender trend control

Key Notes

• The price of Ethereum is testing the $2,000 psychological mark as Bitcoin is down at almost $83,000.

• The total crypto market has seen a massive crash of nearly 13% in the past 36 hours.

• The liquidation in the crypto market has risen up to $1 billion in the past 24 hours as the price of Ethereum dropped 14.73%.

The price of Ethereum is rapidly approaching the crucial support level at $1,740 as the cryptocurrency continues to plummet.

The daily chart reveals a breakdown of a falling channel pattern. A bearish engulfing candle was formed yesterday with a pullback of 14.73%, canceling the significant recovery of 14% on Sunday.

This crucial center pivot is valued at $2,548. Moreover, the overhead resistance coincides with one of the most critical barriers for ETH according to Ali Martinez, a crypto analyst.

The analyst highlighted a crucial on-chain resistance for ETH around $2,400 with 2.41 million investors holding 62.68 million ETH. A reversal from this has resulted in a massive supply inflow, testing the $2,000 support level.

ETFs Record $369M Outflow in Eight Consecutive Trading Days

Amid the declining Ethereum prices, institutional support deteriorates for the biggest altcoin. On March 3, the daily total net outflow of US Ethereum spot ETFs stood at $12.10 million.

Driving the outflows, BlackRock offloaded $16.06 million worth of Ethereum in the market, while Bitwise registered an inflow of $3.96 million. Over the past eight days, the Ethereum ETFs have recorded consecutive outflows, accounting for $369.45 million.

Key ETH Price Target Levels

As the institutional support declines for Ethereum, the falling channel pattern indicates further bearish continuation. Based on the Fibonacci levels, the downfall is expected to reach the 1.272 Fibonacci level at $1,740.

However, Ali Martinez anticipates a steeper correction for Ethereum. Based on his analysis, Ethereum has broken a parallel channel. This is likely to put a potential downside swing to $1,250.

Optimistically, the lower price rejection in the intraday candle could propel Ethereum back within the falling-channel pattern. In such a case, a consolidation is possible near the local boundary line before retesting the center pivot level close to $2,500.