Ethereum breaks under $2,400 as the crypto market crash intensifies. Will the declining ETH price hit $2,000?
With another day in the bear market, the industry loses $771 million in liquidation. With the downfall, Ethereum has broken under the $2,400 support level and is now trading at a market value of $2,337.
Following the 6.40% dump last night, Ethereum is now testing its crucial support near the $2,200 mark. As the downfall continues, will Ethereum plunge to its psychological support of $2,000?
Ethereum Freefall Continues
In the daily chart, the Ethereum price trend continues, creating its third consecutive bearish candle. This has dropped Ethereum’s price from $2,800 to a market price of $2,339.
Furthermore, it accounts for a nearly 20% crash in the past three days. The downfall has broken under the 23.6% Fibonacci level at $2,665.
With the increasing bearish influence, the 100 and 200 AMA lines have given a negative crossover. This triggers a sell signal for price action traders.
However, the daily RSI line reveals a minor bullish divergence amid the market crash. The daily RSI line hovers slightly above the oversold boundary level, hinting at a potential bullish comeback.
Institutions and Whales Dump ETH Holdings
Amid the market crash, the daily net outflow of the U.S. Ethereum spot ETFs has reached $94.27 million. This marks the highest outflow since January 27.
Driving the outflows, BlackRock dumped $69.76 million in the market, followed by Fidelity offloading $18.38 million. Grayscale and Bitwise outflows reached $3.31 million and $2.81 million, respectively.
Currently, the U.S. Ethereum spot market has recorded five consecutive days of outflows, which is the longest since November 2024.
Amid the declining trend, Ali Martinez, a crypto analyst, has highlighted multiple whales exiting from Ethereum. Over the past week, Ethereum whales have offloaded 440,000 Ethereum coins, leading to an increased supply in the market. Hence, with the sudden increase in supply, the downfall in Ethereum might be prolonged.
Whales have sold over 440,000 #Ethereum $ETH in the past week! pic.twitter.com/ZaL6Ya2pbB
— Ali (@ali_charts) February 26, 2025
Ethereum Price Outlook: Will Bears Take It Below $2,000?
As per the Fibonacci levels, the downfall has reached the crucial support of $2,224. If bears push a daily closing price under this mark, the Ethereum price will likely touch the $2,000 psychological support.
However, in an unlikely case of a bullish comeback, the 23.6% Fibonacci level at $2,665 remains the immediate price target.
