Ethereum Risks Drop to 17-Month Lows if Key Resistance Levels Aren’t Reclaimed

Ethereum (ETH) has experienced a significant drop in the past month, with the cryptocurrency trading below $1,850 for several days.

This marks nearly a 20% decline, prompting concerns that ETH could see further losses. According to analysts, if Ethereum fails to reclaim key resistance levels, it risks falling to 17-month lows.

Ethereum Struggles to Recover Key Support Levels

For the past two days, the altcoin has been trading below a critical support zone, hovering between $1,750 and $1,840. This price action follows its failure to recover the $1,900 mark on Wednesday. The second-largest cryptocurrency by market capitalization had already lost a significant support level earlier in March, dropping below $2,100 for the first time since December 2023.

Since then, Ethereum has seen its worst performance in seven years, marking a negative monthly close for four consecutive months. Analyst Rekt Capital noted that this performance validated a double-top formation within ETHs $2,196-$3,904 Macro Range, signaling potential bearish momentum.

SourceRisk of a 15% Drop to $1,550

Ethereum is currently trading within a historical liquidity pool between the $1,640-$1,930 range, after breaking down from its previous range. According to Rekt Capital, ETH‘s position in this range suggests it could face a bearish retest of the range’s top, which could turn into a new resistance level.

“If Ethereum fails to reclaim the $1,930 mark, which it has struggled to recover over the past week, theres a strong risk that ETH could experience a 15% drop, potentially reaching the $1,550 area,” Rekt Capital warns.

This could mark a significant decline for Ethereum, as it risks testing 17-month lows if it continues to be unable to recover key resistance levels.

Ethereum Dominance and Potential for a Rally

Despite the ongoing struggles, Rekt Capital also pointed out that Ethereum‘s dominance in the market has dropped from 20% in June 2023 to just 8%, which historically has been a point of reversal for the altcoin. When Ethereum’s dominance hit the $7.5%-8.25% range in the past, the cryptocurrency reversed its fortunes and regained market dominance.

This trend could signal a potential reversal, suggesting that Ethereum might be gearing up for a rally if it can overcome the current challenges and reclaim its dominant position in the market.

Conclusion: Ethereums Next Move

Ethereum is at a critical juncture. While it has struggled to regain key support and resistance levels, there is still potential for a rally if it can break past the $1,930 mark and reclaim its position in the broader market. However, if the current trend continues and Ethereum fails to bounce back, it could risk further declines, possibly heading towards the $1,550 area.

For now, Ethereums future performance will largely depend on its ability to recover key resistance levels, as well as its position relative to the broader crypto market.

Kosta Gushterov

Reporter at Coindoo

Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.