Ethereum's Plunge: Bearish Sentiment Drives 7.4% Drop, Social Sentiment at 12-Month Low

Ethereum's price has been a subject of concern among investors recently, as it approaches critical support levels amidst growing bearish sentiment. A significant 7.40% drop on February 28 has placed Ethereum (ETH) back in the spotlight, resulting in considerable liquidations and fracturing investor confidence. According to prominent crypto investment manager 0xLouisT, Ethereum's social sentiment is at its lowest in the past 12 months, indicating a widespread bearish outlook among traders.

The current ETH price trajectory indicates a troubling trend, having fallen 24.50% over the past week, marking its worst weekly performance since 2022. A pivotal moment is approaching, as a weekly close beneath $2,300 would represent the lowest close since November 2023, effectively establishing a two-year low. The latest Ethereum weekly chart shows compelling evidence that the top altcoin is on track to close below its 200-weekly exponential moving average (EMA), a key indicator that has historically tracked Ethereum's bottom range closely. Since 2020, ETH/USD has closed below the 200-weekly EMA level only 39 times out of a possible 268 weeks—representing a mere 14.55% of the time.

With these historical trends in mind, it raises the possibility that Ethereum could reclaim a position above the EMA level within the next few weeks. However, concerns are mounting as a double-top pattern appears to be solidifying. A close under $2,100 would validate the neckline of this pattern, significantly heightening the risk of a steep decline towards a potential support level at $1,500. Investor Jason Pizzino has weighed in, suggesting that a close below the $2,000-$2,100 range would signal further trouble for Ethereum. He emphasizes that maintaining a value above $2,000 is crucial to invalidate this double-top pattern observed in the charts.

While Ethereum strives to sustain its position above $2,000, insights from Glassnode reveal that the current cost-basis distribution (CBD) price is notably lower, around $1,890. This figure is not static but rather a reflection of the range of prices at which the ETH was last transacted on-chain