Ethereum Plunges 12% in 24 Hours, Technicals Signal Potential Crash to $2000

Ethereum's price has taken a significant downturn, with technical analysis indicating a potential crash to $2,000. Crypto analyst SwallowAcademy, on the TradingView platform, pointed out that bearish signals are forming in smaller timeframes, as buyers have failed to maintain a key support zone at $2,700. The broader market downturn over the past 24 hours has further strengthened the case for further declines in Ethereum's price.

Ethereum has plunged over 12% in the past 24 hours, aligning with SwallowAcademy's warning about Ethereum's weakness on smaller timeframes. This steep decline has led to a potential drop to $2,000. Initially, SwallowAcademy emphasized that Ethereum remained in a solid buying zone due to the presence of EMAs at the $2,700 support. However, with price action shifting, the analyst acknowledges that bearish pressure on lower timeframes could open the door for further declines.

This Ethereum price crash in the past 24 hours came as a surprise, as bulls managed to hold above a key support level of $2,700 despite the fiasco of Bybit's $1.5 billion hack that took place throughout the weekend. Although the immediate fallout from the exchange's hack appeared contained, the market now seems to be experiencing a delayed reaction, and fear is gradually setting in among investors. This growing uncertainty, combined with persistent outflows from crypto investment products, including Spot Bitcoin and Spot Ethereum funds, has added more downward pressure on Ethereum's price.

The current Ethereum daily candle is firmly in the hands of sellers, with no signs of easing pressure. This is a significant change from the previously strong buying sentiment. The weakening weekly candle has tipped the scales towards more declines than a bullish uptrend, though it is still early in the week to decide. If the current selling momentum continues and the price breaks below $2,200, the next major downside target is $2,000 before any notable bounce can occur.

At the time of writing, Ethereum is trading at $2,395 and is at the risk of more declines over the next 24 hours. Despite the sharp drop, the RSI has yet to reach oversold conditions, which means that sellers may still have room to push prices lower