Ethereum Drops 1.7% in 24 Hours Amid Bearish Market Sentiment

Ethereum's latest price was $1615.51, up 1.699% in the last 24 hours. The cryptocurrency has been facing significant challenges in recent times, with its performance disappointing investors who had anticipated a surge alongside Bitcoin. The cryptocurrency has experienced a violent reversal, returning to levels not seen in five years. Despite the substantial value lost, analysts continue to predict further declines, indicating that the Ethereum price still has a lot of falling to do.

One of the key levels to watch is $1,724, which is seen as a crucial deciding factor for Ethereum. If the price can clear this resistance and turn it into support, the next major resistance levels are $1,840 and $1,926. However, if the bulls fail to clear this level, a continuation of the downtrend is expected, with the first target being $1,409. In the case of a complete break, the price could crash further to $1,350 and then $1,265 in the long term.

The overall sentiment in the crypto market is bearish, and Ethereum's performance has exacerbated this sentiment. On-chain metrics also indicate a lack of interest in the Ethereum blockchain, with gas fees dropping to 2020 levels and whales dumping large amounts of ETH. These factors suggest that the decline may not be over yet.

Despite the bearish market conditions, Ethereum's fundamentals remain strong. The network processes over 95% of all stablecoin transactions and leads in Total Value Locked (TVL) across DeFi and Real World Asset (RWA) protocols. It is also the only altcoin with an approved spot ETF in the US, and several upgrades are lined up to improve its speed and reduce transaction costs. These strengths have led some analysts to suggest that the current downturn could be a strategic accumulation zone for long-term holders.

Ethereum is currently trading near major demand levels while macroeconomic uncertainty deepens. Global tensions, particularly the trade war between the US and China, have driven volatility across digital markets. Despite the technical weakness, Ethereum's strong fundamentals provide a reason to remain optimistic. The network's role as the backbone of the DeFi ecosystem, its high TVL, and its institutional legitimacy add to its appeal as a long-term investment.

Ethereum's price action has been choppy, with the market stuck in a narrow range between $1,500 and $1,700. Bulls are eyeing the 4-hour 200-day Moving Average (MA) and Exponential Moving Average (EMA), both sitting near the $1,800 level. Reclaiming this zone would mark a major short-term victory for buyers and could signal the beginning of a recovery phase. However, the downside risks remain, with the next leg potentially sending the asset beneath the $1,500 mark.

Veteran trader Peter Brandt has predicted that Ethereum could fall back to $800, citing a descending triangle pattern that often signals a bigger price drop ahead. The key support level is around $1,500, and if ETH falls below this level, Brandt believes it could crash all the way down to around $800. This prediction comes as ETH continues to struggle with resistance and market uncertainty.

Ethereum has also faced competition from other cryptocurrencies, with XRP recently surpassing it in terms of fully diluted market cap (FDV). However, Ethereum still maintains a higher actual market cap based on its circulating supply. Despite these challenges, Ethereum continues to lead in actual market cap and remains a dominant force in the crypto ecosystem.

A long-silent Ethereum whale has recently made a major move, snapping up millions worth of ETH after nearly three years of inactivity. This move suggests that smart money may view current levels as undervalued. However, the market is not all green lights, as large inflows from other addresses, particularly one linked to Galaxy Digital, moved thousands of tokens to exchanges, signaling incoming sell pressure. Ethereum is now at a decision point, with the potential for broader demand if buyers continue to accumulate, or deeper downside if sell pressure increases.