Ethereum, the biggest altcoin, is on a slipper slope hanging close to the $2,000 crucial support level. With rising liquidations in the market, will a bearish trend in ETH price result in a $1,740 retest?
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
Ethereum ETH $1 784 24h volatility: 6.5% Market cap: $215.23 B Vol. 24h: $25.19 B is testing the $2,000 psychological mark as Bitcoin BTC $81 907 24h volatility: 5.2% Market cap: $1.63 T Vol. 24h: $52.82 B is down at almost $83,000. As bulls abruptly surrender trend control, the total crypto market has witnessed massive crash of nearly 13% in the past 36 hours.
With the downfall, the liquidation in the crypto market has risen up to $1 billion in the past 24 hours. As Ethereum loses $2.60 million in long liquidations, the total Ethereum liquidation rise up to $2.84 million. With potential breakdown rally at play, will Ethereum test the $1,740 crucial support?
In the daily chart, the ETH price action reveals a breakdown of a falling channel pattern. With a bearish engulfing candle formed yesterday with a pullback of 14.73%, the bears undermined the significant recovery of 14% on Sunday.
Ethereum Price Chart
The bearish trend continues with an intraday pullback of 3.19%, driving the current market price to $2,078. Furthermore, the 24-hour low at $2,002 signals a minor lower price rejection.
However, the breakdown of the local support trend line of the falling channel pattern warns of a bearish continuation. The sudden pullback in ETH starts after the bullish failure to surpass the center pivot level.
This crucial center pivot is priced at $2,548. Furthermore, the overhead resistance coincides with one of the most critical barriers for ETH as per Ali Martinez, a crypto analyst.
The most critical resistance barrier for #Ethereum is $2,400, where 2.41 million investors hold over 62.68 million $ETH. A breakout above this level could clear the path for a rally toward $3,000! pic.twitter.com/l2SougAWuM
— Ali (@ali_charts) March 4, 2025
The analyst has highlighted a crucial on-chain resistance for ETH near $2,400 with 2.41 million investors holding 62.68 million ETH. A reversal from this has resulted in a massive supply inflow, testing the $2,000 support level.
Amid the declining Ethereum prices, institutional support deteriorates for the biggest altcoin. On March 3, the daily total net outflow of US Ethereum spot ETFs stood at $12.10 million.
Driving the outflows, BlackRock offloaded $16.06 million worth of Ethereum in the market, while Bitwise registered an inflow of $3.96 million. Over the past eight days, the Ethereum ETFs have recorded consecutive outflows, accounting for $369.45 million.
As the institutional support declines for Ethereum, the falling channel pattern warns of a bearish continuation. Based on the Fibonacci levels, the downfall is expected to reach the 1.272 Fibonacci level at $1,740.
#Ethereum $ETH seems to be breaking out of a parallel channel, potentially setting up for a move to $1,250! pic.twitter.com/mciXzLJ8Ea
— Ali (@ali_charts) March 4, 2025
However, Ali Martinez, the crypto analyst, anticipates a steeper correction for Ethereum. Based on his analysis, Ethereum has broken a parallel channel. This is likely the downfall puts a potential downside swing to $1,250.
Optimistically, the lower price rejection in the intraday candle could propel Ethereum back within the falling-channel pattern. In such a case, a consolidation is possible near the local boundary line before retesting the center pivot level close to $2,500.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
