Ethereum Faces Turbulence at 29,946,347,563: $2000 Support Level at Risk

Ethereum is facing a severe test, with expectations of potentially dropping below the $2000 mark in the coming hours, further approaching key support levels.

Recently, Ethereum's price has been continuously declining, reflecting a gradual slowdown in its network activity and diminishing interest from investors.

From the price trend, Ethereum has failed to find rebound momentum and lacks strong signs of recovery, further increasing its downward pressure.

As the price drops rapidly, Ethereum continues to create lower highs and lower lows.

The moving averages are consistently declining, clearly indicating the market's downward trend, which shows that bearish sentiment dominates the market.

The ongoing decline of the 50-day and 200-day moving averages indicates weak buying interest in the market, while selling pressure remains persistent.

The contraction of Ethereum's network size undoubtedly exacerbates the current predicament.

On-chain data shows that both retail and institutional investors are gradually withdrawing their investments, leading to a continuous decline in trading volume and the number of active addresses.

Meanwhile, decentralized finance (DeFi) activities are slowing down, and support for investments in Ethereum projects is insufficient, further deepening its dilemma.

From a technical perspective, the outlook for Ethereum remains grim. The $2000 mark is not only a significant psychological barrier but also a key technical support level;

once this support level is breached, it could trigger a larger-scale correction.

The next major support level for ETH is at $1800, and it could even drop to $1700. If selling pressure increases further, Ethereum's price may continue to decline.

The Relative Strength Index (RSI) is currently in the oversold zone, theoretically suggesting a possibility of a rebound in the short term.

However, to reverse the current downtrend, Ethereum must break through the key resistance level of $2200.

Before that, given that the market has yet to show clear signs of recovery, it is expected that Ethereum will continue its downward trend.