Ethereum Drops Below $2,000 Amid Liquidation of $230 Million in Long Positions

2 min

Ethereum's market capitalization stands at $255 billion, with recent trading prices fluctuating around $2,113.09 after a 1.22% decline in the last 24 hours. The cryptocurrency briefly fell below $2,000, prompting a significant increase in trading volume by 148.13%.

Despite President Trump announcing a US crypto reserve including Bitcoin and Ethereum, there is no notable bullish momentum observed in the market. The reserve will not involve new purchases but will utilize existing government-held tokens.

Price Movement Predictions

Analyst Ali Martinez forecasts an 18% price move for Ethereum, indicating potential bearish continuation.
Key support is identified at $2,000; a breakdown could lead to targets of $1,900 or $1,875.
A breakout above $2,150-$2,200 could invalidate the bearish trend, possibly reaching $2,300-$2,400.
The recent dip below $2,000 resulted from $230 million in ETH long position liquidations.

In contrast, over 600,000 Ether tokens were withdrawn from exchanges in the past week, presenting an optimistic outlook for investors.

Technical Analysis

The Relative Strength Index (RSI) for Ethereum is at 37.95, indicating bearish control. A possible retest of the 20-day Exponential Moving Average (EMA) is anticipated at $2,338.

The MACD indicator shows sellers are dominating, but a bullish crossover may occur if the blue line surpasses the orange signal line.