Ethereum Drops 6% Weekly, Hovers Below $2,100 Resistance

Ethereum (ETH) has been struggling to reclaim the $2,100 resistance level, experiencing a 6% drop over the past week. The second-largest cryptocurrency by market capitalization has been trading within a narrow range, leading some market analysts to suggest that it may continue to move sideways before making another significant move.

After closing its worst first quarter since 2018, Ethereum has been hovering between the $1,775 and $1,925 price range. Despite a recovery attempt last Monday, Ethereum is still trading 6% below its monthly opening. However, the cryptocurrency has fallen over 10% from last week’s high, closing the first quarter 45.4% below its January opening and 18.6% from its March opening. This marks Ethereum's worst performance in seven years, with four consecutive months of decline for the first time since 2018.

Daan Crypto Trades noted that Ethereum is still trading in a "no man’s land" despite recent attempts to break above its current range. In early March, Ethereum dropped below the $2,100 mark, losing its 2024 gains and hitting a 16-month low of $1,750. The trader suggested that the crucial levels to watch are a breakdown below $1,750 or a breakout above $2,100. "Anything in between is just going to be a painful chop," he added.

Another market watcher, Merlijn The Trader, highlighted that Ethereum is trading at levels similar to 2021, within the breakout zone that led to Ethereum’s all-time high. He pointed out that Ethereum has stronger fundamentals and more institutional demand four years later. "ETH is sitting on the same monthly support that ignited the 2021 bull run. Hold it, and $10K is in play. Lose it… and things get ugly," he detailed.

Analyst VirtualBacon considers that Ethereum will continue to trade within its current price range for the time being. He explained that Ethereum’s price has fallen to retest the last bear market resistance levels, as it has erased all its gains since November 2023. The analyst considers this zone a "good value range" but doesn’t expect the cryptocurrency to break out "right away." However, he added that a bullish breakout is "simply a matter of time" in longer timeframes. "Ethereum always catches up when the Fed pivots and the global liquidity index beings to uptrend. That’s when you see the ETH/BTC ratio start to turn up again, leading the rest of the altcoin market," he concluded.

Ali Martinez pointed out that the number of large Ethereum transactions has significantly declined over the past month, dropping 63.8% since February 25. During this period, large transactions fell from 14,500 to 5,190, signaling a drop in whale activity on the network. He also noted that whales have sold 760,000 ETH in the last two weeks. As of the latest update, Ethereum is trading at $1,903, marking a 6% drop in the weekly timeframe.