Ethereum Plunges Below Key Support, Millions at Risk

Ethereum's price has been volatile in recent days, with the second-largest cryptocurrency by market capitalization experiencing a significant drop. Following the $1.5 billion hack of crypto exchange Bybit, the crypto industry experienced a market correction that sent most cryptocurrencies below their key support levels. Bitcoin's price fell below the $90,000 mark for the first time since November, and Solana, one of the leading Altcoins of the cycle, dropped 30% in five days, hitting a five-month low.

Ethereum initially held relatively well compared to most cryptocurrencies despite accounting for $1.2 billion of the assets stolen in the hack. However, the "King of Altcoins" failed to sustain the $2,600 support after the market crash resumed on Monday. Crypto analyst Ali Martinez had previously warned that this level was key for cryptocurrency's bullish trend continuation, and failing to hold this support zone would send the price to the $2,400 mark.

After the drop, the analyst stated that the $2,425 level was Ethereum's next most critical support zone, as 10.33 million wallets accumulated 63.43 million ETH. However, the cryptocurrency failed to hold this level on Wednesday, dropping to $2,300 in the past 24 hours. Martinez warned that Ethereum needs to hold the $2,345 support level now, where 2 million investors bought 58.88 million ETH. If it falls below this level, the millions of investors will be in the red numbers.

Analyst Carl Runefelt also cautioned about ETH's current levels, suggesting that Ethereum risked dropping another 6%. The analyst advised investors to monitor the bearish flag forming in Ethereum's hourly chart for the past day, as it could send ETH's price near the $2,000 support line. If the cryptocurrency fails to hold the $2,320-$2,330 level, Ethereum's price targets a breakdown to $2,180.

Crypto analyst Ted Pillows highlighted ETH's bullish divergence in the 3-hour chart, suggesting that "a short-term rally towards $2,600-$2,700 looks possible