Ethereum Plummets 9.3% to $1,620 as Crypto Market Drops 5%

Ethereum has experienced a significant drop, falling below the $1,800 mark, which has sparked concerns about further declines. The broader crypto market has also taken a hit, with a 5% drop in the past 24 hours. Ethereum's price has plummeted by 9.3%, now trading at $1,620. This selloff is not isolated to Ethereum; it has spread across major altcoins, causing panic and leading to massive outflows from both centralized and decentralized platforms.

The current price of Ethereum is $1,620, with a 24-hour change of -9.3% and a 7-day change of -11%. The market cap stands at $195.3 billion, and the market sentiment is highly bearish. Momentum indicators suggest that Ethereum is oversold on multiple timeframes. This price drop is not just a temporary fluctuation but a technical breakdown, as the breach of $1,800 has flipped previous support into resistance, leaving Ethereum in a vulnerable position.

There are three main catalysts behind Ethereum's sharp decline. First, there is macro selling pressure, with traders exiting risk assets in favor of stablecoins or fiat. This is not a sector-specific dip but a widespread trend, especially after the recent trade war. Second, Asian trading desks and retail traders have been dumping across the board, particularly overnight. Volume spikes out of Asia have led every major downturn this week. Third, there have been heavy outflows from exchanges, with many investors choosing to sit in stablecoins while the market finds a bottom.

If the downtrend continues, Ethereum could retest the following levels in quick succession: $1,500, which is a minor support level from last summer; $1,200, which is a stronger support last tested in 2023; and $1,080, which is the final major floor before 3-digit territory. These levels assume continued market-wide dumping, and any reversal in sentiment or positive macro news could trigger a bounce. However, for now, the trend is down, and Ethereum is following it hard.