As Bitcoin crumbles to $83,000 levels, Ethereum is down at its $2,000 psychological mark. Currently, Ethereum is trading at a market price of $2,084, registering a 24-hour pulldown of 11.49%. With a market cap of $251 billion, Ethereum is down by 15% in the past 7 days.
Furthermore, the recent pullback undermines the overnight weekly recovery with the announcement of the U.S. crypto reserve. As the bearish trend regains strength, is Ethereum likely to retest the $1,500 mark? Let’s find out.
Ethereum Price Action Analysis
In the daily chart, the Ethereum price trend continues a declining phase within a falling channel pattern. The overnight downfall of nearly 15% on Monday has undermined the weekend recovery, resulting in a breakdown of the falling channel pattern.
Currently, the bearish trend continues in Ethereum, marking the lowest closing price since the $1,500 mark. Furthermore, the increasing bearish intensity has resulted in a negative crossover between the 100-day and 200-day EMA lines.
As Ethereum maintains a declining trend, the institutional support for the biggest altcoin fails to resurface. With eight consecutive days of outflows, Ethereum ETFs on March 3 recorded an outflow of $12.10 million.
Ethereum Open Interest Drops to $19B
The open interest of Ethereum has declined by 8.25% amid the declining price trend to reach $19.09 billion. The long-to-short ratio over the past 24 hours is down at 0.9524, reflecting an X percent of bearish positions at play. The liquidations over the past 24 hours have accounted for $190 million, with long liquidations rising to $157.95 million.
Amid the increased volatility and bearish influence, the funding rate of Ethereum is at 0.0020%, reflecting the bulls paying the bears to hold the long positions.
Key ETH Price Levels
Based on the price action analysis, the declining trend in Ethereum is likely to continue with the falling channel breakout. The crucial support for Ethereum is near $1,542. However, a potential turnaround or consolidation could be seen near the $1,800-$1,900 zone.
On a bullish front, the chances of a recovery are extremely slim. However, a recovery within the channel will likely re-challenge the 20-day EMA at $2,487.
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