Ethereum Drops 20% Below $2000, Signaling Potential Bull Run

Ethereum, the second-largest cryptocurrency by market capitalization, has been closely monitored following a significant price drop, falling below $1400 for the second time. This decline has brought the price near a pivotal support level, which it previously bounced from, indicating that the current bearish trend may be nearing its bottom. The price action suggests that Ethereum is trading at generational lows, which could signal an impending reversal and the start of a new bullish trend.

Ethereum has shown remarkable strength and sustainability, aiming to maintain a healthy upswing. The token's recent test of the 2018 highs for the first time since March 2023 suggests that the bottom of the current bearish trend may be in. The weekly Ethereum chart also hints at a potential reversal, which could revive a decent ascending trend. The Relative Strength Index (RSI) on the weekly chart has reached the lower threshold, dropping below 30, a level it has only reached during the bottoms of 2018 and 2022. This indicates that the Ethereum price bottom could be in.

Another bullish indicator is the current price dropping below the Ethereum realized price of $2000. This is a rare event that has only occurred once before, in March 2020, when the Ethereum price dropped from $283 to $019. According to the analyst's forecast, history could repeat itself, triggering a significant Ethereum bull run towards a new all-time high, potentially above $6500 to $7000. In the short term, the Ethereum price slipping below $2000 suggests that many are watching it closely. The decline in active addresses, lower fees burnt, and supply bump post-merge hint at waning interest. Historically, these dips have set the stage for major rebounds, with an average run-up of over 200% after past drops. This could be a huge buy zone, and the Ethereum price seems to be at the foothill of a massive explosion, which may elevate the levels close to a 5-digit figure soon.