Ethereum loses $2K as traders expect deep correction in ETH price
Ether (ETH)'s drop below $2,000 on Friday could trigger a deep correction in the coming weeks or months.
Main Receptors:
Ether's price has failed to hold above $2,000 psychological support, indicating structural weakness.
Analysts say ETH price may drop further to the $1,750-$1,850 support zone.
Ether's demand remains negative, the downward potential increases.
Ether traders expect a deeper correction
Data from TradingView shows ETH/USD trading at $1,975, down 5% over the past 24 hours. This drop was accompanied by long ETH liquidations of over $111 million.
Related: Bitmine launches institutional Ethereum staking platform
The pair failed to break through resistance at $2,200 earlier in the week, where the Ether Exchange Traded Fund (ETF) exit, falling DEX volumes and declining ETH futures premiums capped Ether's recovery.
“$ETH continues to face similar resistance, but the story is set below price action,” trader Onur said in an X post on Friday:
“Even with strong long-term narratives, short-term interest still seems thin.”
Fellow analyst CryptoWZRD said ETH could see “further declines” to the $1,800 support zone after the altcoin closed below $2,200 on Thursday.
“$ETH has dropped below the $2,100 level,” analyst and trader Ted Tras said on Friday's X-Post.
“This is a sign of weakness and shows what's coming next for ETH.”
The accompanying chart suggests that the price may first drop to the $1,800 support level, before rebounding.
According to Cointelegraph, a drop below the 50-day simple moving average by $2,000 could drag the ETH/USD pair to $1,900 and then to the $1,850-$1,750 level.
Ether demand is at a 16-month low.
Ether's apparent demand turned negative after falling to its lowest level since October 2024, as traders took a risk-averse stance due to geopolitical uncertainty and macro headwinds.
Capriole Investment's Ethereum open demand gauge shows that demand for ETH has been negative since March 3, falling to -58,000 ETH on March 16, marking 16-month lows. The measure has improved to -23,475 ETH since writing.
Meanwhile, spot ETH ETFs recorded seven consecutive days of net outflows, totaling $391.8 million.
Global Ether exchange-traded products (ETPs) recorded $27.2 million in outflows last week, dampening appetite for ETH among institutional investors.
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