Ethereum warns of a potential downfall to $1,897 as sellers are on the verge of breaching the $2,000 bullish support.
As Bitcoin dropped to nearly $80,000, Ethereum is back to retest its $2,000 psychological support. With a 24-hour low at $1,988, Ethereum is fluctuating close to the $2,000 mark.
Currently, Ethereum trades at a market price of $2,062 with an intraday recovery of 2.12%. Will this short-term intraday recovery help Ethereum overcome the recent 8% crash? Let’s find out.
Ethereum Targets $1,897 After 20% Drop Last Week
Amid the recent market crash, liquidations in Ethereum long positions have risen to $230 million. This massive pullback has shaken out multiple over-leveraged traders.
Currently, Ethereum is struggling to find support near the $2,000 psychological level. The falling Ethereum price has registered a nearly 20% drop from last week. It builds upon a 10% pullback the week before.
Amid the intense pullback, Ethereum has breached the 61.80% Fibonacci level at $2,235. After a retest, the Ethereum price is now hinting at a potential retest of the 78.60% level at $1,897.
Dogecoin Price ChartAs ETH prices hover near $2,000, momentum indicators show minimal chances of a bullish recovery. The MACD and signal lines are trending negatively, but the declining bearish histograms suggest a potential bullish crossover.
Furthermore, the daily RSI line indicates a bullish turnaround as it fluctuates near the oversold boundary, highlighting a bullish divergence.
ETH Price Target
Based on the Fibonacci levels, a closing below the 78.60% level could bring Ethereum down to the $1,540 mark. However, a crucial horizontal support level at $1,750 may provide early support.
On the bullish side, the 61.80% Fibonacci level at $2,235 serves as the immediate critical resistance.
Will Ethereum Bounce Back as Reserve on Exchanges Decline?
During the recent Ethereum crash, Ali Martinez highlighted significant outflows from crypto exchanges. In a recent X post, the analyst noted that over 600,000 ETH had left the exchanges.
This reduced the Ethereum exchange reserve from 19.20 million ETH to 18.60 million ETH. The declining exchange reserve points to a short-term decrease in ETH supply, which could help limit the downside and fuel the next recovery rally.
Over 600,000 #Ethereum $ETH have been withdrawn from crypto exchanges in the past week! pic.twitter.com/oPmLi4lxTw
— Ali (@ali_charts) March 10, 2025
