Ethereum is once again in the spotlight, as its price dips below the crucial $1,800 level, raising concerns of a potential drop toward $1,500. While bearish pressure dominates, some traders are eyeing a possible bullish reversal in the form of a double bottom.
Technical Outlook: Double Bottom Could Signal a Turnaround
On the daily chart, Ethereum has formed six consecutive bearish candles, representing a nearly 12% decline. The price is now testing pivot support S1 at $1,762, where a Doji candle has appeared — a potential early signal of trend exhaustion.
This setup hints at the formation of a double bottom, as ETH previously bounced off the same level in early March. Additionally, the RSI shows bullish divergence, strengthening the potential for a reversal.
However, for the pattern to be confirmed, Ethereum must break above the local resistance trendline, which has been capping any bullish momentum within the broader descending channel.
Whale Liquidations Threaten $229 Million in Ethereum
As ETH’s price slides, two major whales on Maker DAO are at risk of massive liquidations. According to data from LookOnChain, they currently hold over 125,000 ETH worth $229 million.
Their liquidation thresholds sit at $1,787 and $1,701. If ETH drops below these levels, it could trigger large-scale liquidations that would accelerate the downward correction — potentially all the way to $1,500.
Hope on the Horizon? Analysts Spot a Possible Rebound
Despite the bearish momentum, analysts like Jonathan Carter see potential for a bullish bounce. He notes that Ethereum is testing the lower edge of a descending triangle, which may act as a springboard for a move higher.
If ETH holds above $1,800, it could push toward resistance levels at $1,950 and $2,080. In a more bullish scenario, Carter targets $2,230 and $2,320.
Summary: A Tug of War Between Bulls and Bears
Ethereum is clearly at a critical juncture — either it finds support and rebounds, or it sinks further under selling pressure. The threat of $229 million in whale liquidations remains a major wildcard.
A daily close below $1,762 would likely deepen the correction, with a potential retest of the $1,500 support zone. On the other hand, a successful breakout above resistance and confirmation of the double bottom could set ETH on course for $2,300 and beyond.
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