- Ethereum faces a critical test as it struggles below $1,800, with $229M in whale liquidations threatening a drop to $1,500.
- Ethereum’s potential double-bottom reversal could spark a rebound, but breaking key resistance levels is crucial for a sustained recovery.
Ethereum’s price action has traders on edge as the cryptocurrency struggles below the $1,800 support level. With bearish momentum building and whale liquidations looming, could ETH be heading for a steep correction to $1,500, or will it pull off a bullish double-bottom reversal?
Ethereum Faces Critical Support Test
Ethereum recently dipped to a 24-hour low of $1,754, marking a significant break below the crucial $1,800 threshold. At the time of writing, ETH is attempting to reclaim ground at $1,809, but the prevailing downward pressure has sparked concerns of further declines.
Over the past six days, Ethereum has been in a freefall, shedding nearly 12% of its value. The declining trend has now brought ETH to the $1,762 S1 pivot support level. However, a glimmer of hope arises as bullish traders eye a possible double-bottom formation, hinting at a reversal.
Can Ethereum Defy the Bearish Trend?
Technical indicators suggest that Ethereum may have a chance to rebound. A Doji candle forming near the support level signals indecision in the market, with a possible shift in momentum. The daily RSI also shows bullish divergence, adding weight to the double-bottom reversal theory.
For ETH to confirm a bullish breakout, it must overcome the local resistance trendline that has restricted upward movement within the broader falling channel pattern. If successful, Ethereum could set its sights on resistance levels at $1,950 and $2,080, with further upside potential toward $2,230 and $2,320.
$229M in Whale Liquidations Could Trigger a Steep Drop
Adding to Ethereum’s precarious situation, large-scale liquidations threaten to accelerate the downward spiral. Data from LookOnChain reveals that two major whales on Maker DAO are holding 125,603 ETH, worth approximately $229 million, near their liquidation prices of $1,787 and $1,701.
Should Ethereum’s price continue its descent, the forced liquidation of these holdings could fuel a cascading sell-off, pushing ETH toward the $1,500 mark. A close below the $1,762 support would likely confirm this bearish scenario.
Bounce or Breakdown?
Ethereum is at a pivotal juncture. If bullish traders can defend the $1,762 support and break above resistance, ETH could see a strong recovery. However, if whale liquidations come into play, a deeper correction could be inevitable.
With Ethereum’s next move hanging in the balance, traders should brace for high volatility in the coming days. Will ETH reclaim its bullish momentum, or is a plunge to $1,500 imminent? The market is watching closely.
