ETH News—What’s Next For Ethereum After Losing Critical Support?

Ethereum Price Prediction: Why ETH Is Going Down and Will It Recover?

Compared to Bitcoin (BTC), Ethereum ( ETH) has been showing a more severe bearish trend, more underperformance. The altcoin recently broke down from a three-year-long support level, raising serious concerns about its future price action.

Meanwhile, Longling Capital, a major crypto player, just withdrew 10,001 ETH ($19.16M) from Binance after depositing 21,000 ETH ($38.81M) eight hours earlier. This same entity was previously liquidated on-chain for 93,793 ETH ($114M) during the market crash on June 14 and June 15, 2022.

Adding to the bearish momentum, a whale dumped 25,800 ETH ($47.8M) at a loss of over $32M to avoid liquidation. The same whale currently holds 35,034 ETH ($64.68M) on Aave, with a health rate of 1.4 and a liquidation price of ~$1,316.

ETH Price at a Critical Support Level

According to renowned crypto analyst Ali Martinez, Ethereum is currently testing a key support level based on the MVRV Pricing Bands. If the Realized Price at $2,060 fails to hold, ETH could decline further to its next major support level around $1,440.

Furthermore, Martinez pointed out that on the 3-day chart, ETH has broken below an ascending triangle pattern. Based on the pattern’s measurement, the next target could be as low as $1,000, indicating a major downside risk for Ethereum holders.

Whale Accumulation at Its Peak: A Bullish Signal?

Whale accumulation has exploded in spite of the adverse market action, following past patterns that preceded bull runs.  Well-known expert Crypto Rover pointed out that ETH addresses between 10K and 100K ETH had notably raised their levels.  Previous times of this tendency were 2017 and July 2020, both of which resulted in dramatic price swings.

As the crypto market value struggles to stay above $2.6 trillion, whales are likely taking advantage of the lower prices. This could mean that prices will soon start going up again.

Ethereum Price Analysis: Is ETH Heading to $1,500?

Ethereum has shown clear volatility in 2024 and has tested the $4,000 barrier. However, bears have maintained control, keeping the price restricted below key resistance levels and triggering a massive pullback.

The ETH price has now broken its ascending support trendline from July 2022, leading to a period of equal bullish and bearish pressures. A significant movement in either direction is indicated by the development of a Doji candle on the weekly chart.

ETH price is also trading below the 20-day, 50-day, 100-day, and 200-day moving average, suggesting that price might stay under selling pressure for a longer length of time. The weekly RSI is approaching the lower barrier, though, indicating that a possible bounce might be just around here.

Conclusion: Will Ethereum Recover or Drop to $1,000?

Ethereum is right now in a critical state, and important support levels are under testing.  If ETH falls short of $2,060, additional downside below $1,440 or even $1,000 is still rather likely.  Whales accumulating at maximum levels, however, point to long-term positive possibilities.