Ethereum price has fallen below the critical $1,800 support level. The price fell to an intraday low of $1,754, as the market kept looking at major support and resistance levels.
Analysts believe that the ETH price direction would depend on whether it will continue consolidating or retrace lower.
Ethereum Price Tests Key Support at $1,762
Ethereum price trend over the past few days shows a series of bearish candles, reflecting a 12% decline.
Price action has bounced on the S1 pivot support at $1,762 which is a very critical zone in which the price has previously rebound. Analysts highlight that Ethereum’s movement around this level could determine the next major price shift.
Crypto General, a well-known analyst, has pointed out that Ethereum price is forming a base at $1,800. If this support fails, the top altcoin’s price could drop to $1,500.
For instance, if the price bounces back above $ 2000 levels, then the bullish trend is expected to resume. This level has been considered as a psychological level to Ethereum traders in the past.
Source: Crypto General, X
Whales Face $229M Liquidation Risk
The current price drop is making liquidation risks even higher now for large Ethereum investors. According to on-chain data from LookOnChain, two large whales on MakerDAO are holding Ethereum near liquidation levels. These whales collectively hold 125,603 ETH, valued at approximately $229 million.
Source: X
According to LookOnChain, the liquidation prices were around $1,787 and $1,701.
However, if Ethereum price falls further, more liquidations could occur with increased selling pressure. This could take ETH price even lower, extending the ongoing correction phase.
Ethereum’s Double-Bottom Reversal Potential
Despite the recent bearish trend, analysts see a possible double-bottom pattern forming on ETH price’s daily action.
Double-bottom reversal pattern signifies the end of a bearish phase as the price moves upwards. This projection can only materialize if Ethereum price maintains a position above $1,762 support and retest the $2,100 resistance level.
Jonathan Carter, a crypto analyst, noted that ETH price appears in a descending triangle.
In his analysis, if the price remains above the support level, a breakout could lead to a price rise to $1950 and eventually $2080. Carter kept his price targets to $2,230 and $2,320 if bullish momentum strengthens.
Source: Jonathan Carter, X
ETH Price Must Reclaim $2,100
The $2,100 resistance level remains a critical barrier for Ethereum’s potential recovery. If Ethereum price manages to consolidate above this level, it can be a fresh buying signal.
Analysts stress that Ethereum has to hold above this level to confirm the accumulating double-bottom formation.
However, if prices fail to sustain above $1,762, the prospect of bearish continuation looms. Consequently, if the price goes below $1,700, ETH price will probably revisit the $1,500 level. This would fall in line with Crypto General’s outlook that pegs $1,500 as the next key support level if bearish pressure persists.
