Ethereum has cracked below a key support level of $2,200, reinforcing the bearish mood and triggering warnings of a potential drop to $1,250.
Ali Martinez, a well-known analyst, highlights that Ethereum’s breakdown from a parallel channel signals a potential decline to $1,250 if downward momentum persists.
Following Ethereum’s fall to $1,840, analysts have identified crucial support zones at $1,640 and $1,250. If the selling pressure doesn’t let up, ETH could plummet further toward that $1,250 target, a level that aligns with historical support and Fibonacci retracement levels.
#Ethereum $ETH targets $1,250 after breaking out from this parallel channel! pic.twitter.com/XS3N9p8Unr
— Ali (@ali_charts) March 14, 2025
Is There a Price Floor in Sight?
According to Glassnode, Ethereum’s Cost Basis Distribution (CBD) has increased from 1.6 million to 1.9 million ETH at the $1,886 level. This rise in supply at a specific price point suggests potential accumulation by investors.
Adding to the mixed signals, a custom Capitulation Metric, which integrates CBD and Realized Loss data, highlights growing capitulation pressure in the market. These indicators suggest that ETH could find temporary support around $1,886 before deciding its next move.
Related: ETH Plunges 13.40%, Then Whipsaws: $330M in Liquidations—Price Analysis
Buying Opportunity for Long-Term Holders
Ali Martinez also points to the Ethereum Long-Term Holder Net Unrealized Profit/Loss (NUPL) metric, which is now in the fear zone. This reflects long-term investors dumping their holdings as ETH declines below $2,000.
Source: X
Historically, such fear-driven sell-offs have created prime accumulation opportunities. When investor sentiment shifts, Ethereum could experience a strong rebound, mirroring past recovery patterns. The question is: will enough buyers step in to stop the bleeding?
Technical Indicators Confirm Bearish Trend
ETH/USD daily price chart, Source: TradingView
As of press time, the price currently sits at $1,930.19, a 3.08% recovery in the past 24 hours but an overall 11.82% decline over the past week.
The Relative Strength Index (RSI) is at 35.68, indicating that ETH is approaching oversold conditions. This suggests potential buying interest at lower levels, but without a reclaim of lost support zones, short-term upside remains limited.
Related: Ethereum (ETH) Exchange Exodus: 600,000 ETH Withdrawn — Supply Squeeze Signals Potential Price Surge
Ethereum’s MACD (Moving Average Convergence Divergence) remains in negative territory. The MACD line sits at -209.5, below the signal line at -195.4, confirming the ongoing bearish momentum. A positive shift in these indicators would be necessary for any reversal. Until then, traders should watch for reactions at those key support levels – $1,640 and $1,250.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
