[Ethereum Price Analysis: Is ETH about to fall below $2,000? 】
Ethereum has recently fallen 37%, mainly due to rising recession fears, causing investor panic and selling pressure. ETH is down 37% since Friday, largely due to selling activity by “smart money” sellers who are managing market risk and mitigating risks. The decline took Ethereum below several key support levels, including the 100- and 200-day moving averages, $2,800 support, and the psychological $2,500 level.
The price is now settling in the important support area of $2,100, which was the starting point of the previous rise to yearly highs of $4,000. Considering the severity of the recent decline, sideways consolidation near the $2,100 support is very likely in the near term, followed by a minor bullish correction.
On the four-hour chart, Ethereum is showing significant selling pressure after breaking below the lower border of the $2,800 wedge, a breakout that triggered massive long unwinding, adding to the bearish momentum. ETH has reached the important support area of $2,100, and the market typically enters a consolidation phase after such a sharp bearish move, with a possible pullback towards $2,500 or the Fibonacci retracement zone (0.5 and 0.618 levels).
A period of consolidation and correction is expected in the short term, and traders should proceed with caution and strictly adhere to risk management strategies. Analyzing indicators on the Ethereum futures market can provide valuable insights into market sentiment.
The Taker Bid-Ask Ratio reflects the more aggressive nature of buyers or sellers in the futures market, with a ratio above 1 indicating that buyers are dominant, and a ratio below 1 indicating that sellers are dominant. Ethereum price came under significant pressure after failing to break above the $3,500 level, with rejection of the $3,000 level leading to a significant increase in sell orders in the market and the taker bid-ask ratio falling to its lowest value since 2021, indicating strong bearish sentiment among futures market participants.
This bearish sentiment suggests that futures traders expect Ethereum prices to fall further in the near term, and continued sell order executions suggest that the market is less confident in maintaining higher prices, which could lead to continued downward pressure. Barring a major change in market dynamics or a catalyst that reignites buying interest, the bearish trend is likely to continue.
