Ethereum (ETH) is mired in a bearish market, facing a severe test with massive position liquidations, and the market generally awaits to see when the light of recovery will appear. Recently, the cryptocurrency market has been shrouded in pessimism, with Ethereum being particularly hard hit, as its price has fallen below the important threshold of $2000. Some analysts predict that Ethereum's downward trend may not yet have hit bottom, potentially reaching as low as $1250.
Ethereum has encountered a large-scale sell-off, with prices quickly slipping below the $2000 mark, triggering deep concerns in the market about a possible 75% plunge. Looking back over the past week, Ethereum's decline has exceeded 16%, and since the beginning of the year, its cumulative decline has soared to more than 37%, reflecting the market's pessimistic expectations for altcoins.
At the same time, last week saw a significant increase in outflows from Ethereum ETFs, clearly indicating that institutional investors' interest in Ethereum is rapidly waning. As the largest altcoin by market capitalization, Ethereum is currently completely shrouded in a bearish atmosphere, with the gains accumulated after the November 2024 U.S. presidential election no longer existing.
From a technical analysis perspective, analyst Ali Martinez pointed out that Ethereum is breaking below a parallel channel, which is typically a warning signal of continued price decline. If Ethereum fails to hold key support levels, a 75% plunge is not impossible.
According to Coinglass data, as Ethereum's price fell, the entire cryptocurrency market also underwent a deep adjustment, with liquidation amounts exceeding $600 million. Ethereum's open contracts have also significantly decreased, down by 2.67% to $19 billion, further highlighting the generally bearish sentiment among futures traders.
Yesterday, the Ethereum market experienced severe fluctuations, with over $230 million in long positions forcibly liquidated, causing panic among highly leveraged traders, while also revealing the high risk and volatility of the altcoin market.
Regarding Ethereum's future performance, the key lies in whether bulls can successfully reclaim the resistance level at $2460. Currently, 10.95 million investors hold Ethereum at this price level. If this critical point is breached, it may trigger a strong rebound. However, whether Ethereum will continue to be mired in a downward trend or be able to quickly embark on a rebound path is something the market is closely watching and waiting to see.
