Ethereum (ETH) continues its downward trajectory as mounting selling pressure pushes the second-largest cryptocurrency toward critical support levels. Top analyst Big Cheds has identified the $1,200-$1,300 range as a potential accumulation zone, marking a stark 60% decline from recent highs.
The cryptocurrency market has entered a risk-off phase, with Ethereum leading the bearish sentiment after failing to maintain the psychologically important $2,000 level. Technical indicators paint a concerning picture as ETH trades at $1,840, down significantly from its local high of $3,400.
Technical Analysis Points to Further Downside
According to veteran analyst Big Cheds, Ethereum’s price action suggests more pain ahead for investors. The failure to reclaim the 4-hour 200 moving average and exponential moving average near $2,100 has reinforced bearish control over the market. These technical indicators have acted as strong resistance since December 2024, consistently rejecting any attempted recoveries.
The broader implications of Ethereum’s decline are particularly concerning for the DeFi ecosystem, which relies heavily on ETH’s stability. Recent attempts to break above $2,160 have failed, suggesting persistent weakness in buyer demand.
Key Support Levels to Watch
Market participants are closely monitoring several critical support levels:
- $1,800: Immediate support level currently being tested
- $1,500: Mid-range support from previous market cycles
- $1,200-$1,300: Potential accumulation zone identified by Big Cheds
Market Implications and Future Outlook
The current market structure suggests that without significant buyer intervention, Ethereum could continue its descent toward the projected $1,200-$1,300 accumulation zone. This move would represent a major test of long-term investor conviction and could reshape the broader crypto market landscape.
Frequently Asked Questions
Q: What could trigger an ETH price recovery?
A: A break above the 200 MA/EMA near $2,100 with strong volume could signal a trend reversal.
Q: How does this affect the DeFi ecosystem?
A: Continued ETH weakness could impact DeFi protocols’ TVL and overall sector stability.
Q: What are the key resistance levels to watch?
A: $2,000 and $2,100 represent crucial resistance zones that must be reclaimed for bullish momentum.