According to analysts, the price of Ethereum must hold $1.8 thousand to avoid a breakdown.
Ether's (ETH) rally was stalled above $2,000 late Monday due to strong overhead resistance, as the technical setup suggested that the downward momentum would increase if the ETH/USD pair breaks below $1,800.
Main Receptors:
ETH price needs to hold above $1,800 to avoid another leg drop.
Ether's bear charts and onchain indicators are converging on ETH prices below $1,500.
ETH price: $1,800 remains a key level to watch
Ether's cost-based distribution heatmap shows strong support recently established around $1,800. In the last 30 days, about 1.23 million ETH have been acquired at an average price of $1,890.
This area is now a strong support for ETH, if broken it could test the February low.
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CoinGlass data shows more than $120 million in liquidity over the past two days, wiping out excess profits. Now, the $624 million cumulative long liquid exposure sits above $1,800, a pocket of liquidity below the spot price.
CryptoQuant Analyst Maartunn sees 67,000 ETH, around $130 million, sitting below the spot price, which reinforces the importance of this support zone.
ETH's price triangle pattern targets below $1,500.
From a technical perspective, the $1,800-$1,900 support zone corresponds to the lower trend line of the symmetrical triangle on the daily chart.
If the bullish momentum continues, the ETH/USD pair may drop below the lower boundary of the triangle at $1,850 to test support at $1,750, the multi-year low reached on February 6.
Below that, ETH could drop to the triangle target measured at $1,400, which is 28% below its current price.
Meanwhile, Ether's MVRV extreme deviation price bands show that the price of ETH still has room to go down before the unanticipated profit held by investors reaches its peak, or around $1,650, as shown in the chart below.
As seen in past bear markets in 2018 and 2022, ETH has always been below the lower MVRV band.
If this happens again, the bottom of the ETH price could be below $1,650 in the current cycle, which is in line with the aforementioned symmetrical triangle target.
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