Ethereum’s Bull Run in Jeopardy as Ether Drops 20% and Breaks Key Support
Ether (ETH), the native cryptocurrency of the Ethereum blockchain, has broken below a critical support level, raising concerns that its nearly three-year-long bullish run may be over.
ETH plummeted by nearly 20% in the week ending March 9, marking its worst weekly performance since November 2022, according to TradingView data.
The sell-off saw ETH fall below a crucial ascending trendline that had been intact since the market rebounded from the collapse of Terra’s stablecoin UST in mid-2022. This breakdown suggests a shift in market sentiment, with analysts now looking at possible declines toward the September-October 2023 lows around $1,500.
Breaking a Key Trendline: A Bearish Shift?
Trendlines are widely used by traders to identify market direction and potential support zones. A long-term upward trendline typically indicates steady demand, but once breached, it can signal weakening momentum and growing selling pressure.
With ETH now trading below this critical support level, bearish momentum may continue to build, leading to further liquidations as traders exit their positions.
Key Support and Resistance Levels
Ether’s decline not only broke a multi-year trendline but also slipped below the $2,100 support level, which had acted as a floor for several months.
If bearish pressure persists, ETH could test the $1,500 level as the next major support zone. However, if bulls can reclaim last week’s high of $2,523, it could indicate renewed strength and potential recovery.
