Ethereum (ETH) Price Tanks Below $1,800 as Investors Shift Capital to Bitcoin (BTC)

Ethereum's decline is primarily driven by growing skepticism surrounding regulatory developments in the United States. The nomination of Paul Atkins as SEC chair, initially seen as a positive move for crypto, has faced mounting opposition in Congress due to potential conflicts of interest.

Ethereum price slipped below the $1,780 mark on Monday morning, as investors remain focused on Bitcoin’s price movements.

As BTC attempts to sustain levels above $84,000, shifting some capital out of ETH could continue in the short term. However, broader market optimism and Trump’s crypto policies keep a floor on the declines.

Despite the pessimism, there are some bullish signals that could pave the way for ETH to retest $2,000. But for now, the technical indicators suggest that further downside is likely.

What happened to Ethereum price today?

Ethereum price slipped to an intraday low of $1,751.89 earlier in the day, marking the lowest level since July 13. The decline comes as investors grow increasingly skeptical of regulatory developments in the United States.

The nomination of Paul Atkins as SEC chair, which was initially seen as a positive move for crypto, has faced strong opposition in Congress due to potential conflicts of interest.

This uncertainty could delay or reject pro-crypto policies, such as Trump’s proposed inclusion of ETH in the Crypto Strategic Reserve.

As a result, traders appear to be shifting capital out of ETH and into BTC, which is seen as a safer store of value amid the unpredictability.

Furthermore, liquidity in Ethereum’s spot market decreased by 26% in the last 24 hours, at $1.06 billion, indicating weak buying support at current price levels.

This combination of regulatory headwinds and shifting market dynamics has kept ETH trapped below the $1,800 mark.

12.3 million addresses at risk as ETH struggles to attract buyers

On-chain data trends indicate a looming bearish signal for Ethereum in the short term.

According to IntoTheBlock, if ETH slides below $1,600, it could push 12.3 million addresses into realized losses. The largest accumulation zone for ETH holders lies between $1,596 and $1,790, where 8.73 million addresses hold a total of 3.61 million ETH.

A breakdown of this level could trigger widespread selling pressure, deepening the downturn. However, the lack of significant buying interest at current levels suggests that traders are awaiting either a clear regulatory breakthrough or a deeper price correction before re-entering the market.

At current price levels, there is minimal support, which could lead to further declines in the short term.

Frequently Asked Questions (FAQs)

1. Why is Ethereum’s price dropping?

The decline in Ethereum's price can be attributed to several factors, including the uncertainty surrounding regulatory developments in the United States. The nomination of Paul Atkins as SEC chair has faced strong opposition in Congress due to potential conflicts of interest. This could delay or reject pro-crypto policies, such as Trump's proposed inclusion of ETH in the Crypto Strategic Reserve. As a result, traders appear to be shifting capital out of ETH and into Bitcoin, which is seen as a safer store of value.

2. Will Ethereum recover above $2,000 soon?

The chances of Ethereum reclaiming $2,000 hinge on whether it can break free from the current price band and sustain gains above key resistance levels. A move above $2,212, the ADX breakout point, would signal a return of bullish momentum, while a drop below $1,754 could trigger further selling and push prices toward the critical $1,600 support, where 12.3 million addresses risk slipping into losses.

3. What price level could trigger major ETH sell-offs?

A significant price decrease could occur if ETH falls below the $1,600 support. This level is crucial as it marks a major accumulation zone, with the largest number of ETH holders entering the market in the $1,596-$1,790 price range. If the price drops below $1,600, it could induce a large-scale selloff, potentially pushing ETH further down in the short term. However, the lack of substantial buying interest at current levels suggests that traders are awaiting either a deeper price correction or a clear regulatory breakthrough before actively participating in the market.