Ethereum Drops 17% In A Month, Trades Below $1,850

Ethereum (ETH) has experienced a significant decline, with a 17% drop over the past month, and has been trading below $1,850 for several days. This downturn has raised concerns among investors, as analysts warn that the cryptocurrency could plummet to 17-month lows if it fails to reclaim key resistance levels.

Ethereum has been struggling to regain its footing, trading below a crucial support zone between $1,750 and $1,840 after failing to recover the $1,900 mark. The second-largest cryptocurrency by market capitalization lost its 15-month range in early March, falling below $2,100 for the first time since December 2023. This decline has been the worst performance for Ethereum in seven years, marking the fourth consecutive negative monthly close.

Analyst Rekt Capital noted that this performance validates Ethereum’s double top formation within its $2,196-$3,904 Macro Range. After breaking down from this range, Ethereum is now trading within a historical liquidity pool between $1,640 and $1,930. This position effectively sets the stage for a bearish retest of the range’s top, which could turn this level into new resistance.

Historically, when this level becomes resistance, Ethereum’s price tends to drop to the lower zone of the current range. To challenge a move back to the old Macro Range Low of $2,196, Ethereum must reclaim the top of this demand area. However, a rejection from the $1,930 mark, which it has been unable to reclaim over the past week, could see ETH risk a 15% drop to the $1,550 area.

Rekt Capital also highlighted that since June 2023, Ethereum’s dominance has dropped from 20% to 8%, historically a reversal area for the cryptocurrency. When Ethereum’s dominance touches the $7.5%-8.25% range, it has historically reversed to become more market-dominant, which could signal a reversal for Ethereum.

Several analysts consider the key levels to watch are the $1,750 support and the $2,100 resistance. A break above or below these levels will determine Ethereum’s next significant move. Analyst Sjuul from AltCryptoGems suggested that Ethereum could eye a 20% rally based on a Power of 3 setup in ETH’s lower timeframe chart. The analyst highlighted that the cryptocurrency had an accumulation phase after dropping below the $2,150 support, hovering within the $1,840 and $2,100 levels since March 10.

After dipping below the $1,840 mark, Ethereum has been in the manipulation phase, which could trigger a push to the $2,150 resistance if ETH breaks out and starts the distribution phase. As of the latest update, Ethereum is trading at $1,808, reflecting a 2.2% surge in the daily timeframe.