Ethereum Price Hits Long-Term Support Level, Reversal On The Horizon?

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  • Ethereum price dropped 27% in 24 hours, marking its biggest one-day loss since May 2021.
  • Over $2.22B in crypto liquidations occurred, with ETH long traders losing $605M.
  • ETH price hit a long-term support level, with analysts eyeing a potential rebound.

Ethereum price fell in one day and it recorded its largest decline in price in the last four years. It plummeted by 27% in the last twenty-four hours to trade at around $2,100 before rebounding. It occurred when major cryptocurrencies in the market experienced a drop.

Currently, analysts are trying to determine whether the price current level indicates the beginning of a long-term support trend and thus a recovery.

Ethereum Sees Largest One-Day Decline Since 2021

Notably, the crypto market shows strong interest in Ethereum’s current 24-hour price activity. The cryptocurrency price is the lowest it has fallen in a single day since May 19th, 2021.

ETH price fell to as low as $2,100 and then rose to its current level of $2,560. The market correction has brought the ETH price up and the daily drop has reached 17%.

ETH price fell due to the general pullback observed within the crypto market in which most coins and tokens experienced a decline.

During this period, Bitcoin and XRP alongside Solana and Dogecoin exhibited significant drops in their value.

The widespread downturn triggered extensive liquidations across the crypto market and Ethereum traders suffered the most significant losses.

Over $2.22 Billion in Crypto Liquidations as ETH Traders Face Heavy Losses

Consequently, the market crash led to severe liquidations on exchanges which negatively affected traders who used leverage.

CoinGlass data revealed that the exchange suffered more than $2.22 Billion in liquidations throughout 24 hours marking one of the most significant liquidation events in recent times.

Ethereum traders experienced substantial losses as long position holders incurred a total loss of around $605 Million.

The broader market witnessed traders liquidating positions since traders became anxious about macroeconomic uncertainties.

This stems from the trade policies implemented by the Trump administration. A new wave of risk-averse behavior emerged when trade tariffs were placed on key U.S. partners thus prompting investors to leave risk assets that included cryptocurrencies.

Ethereum Reaches Long-Term Support Level

However, despite the dip, market analysts believe Ethereum price has established a vital long-term base after its recent significant drop.

A historical logarithmic regression trendline supports Ethereum’s current price position because it has previously offered fundamental support for market rebounds.

Strong price support during market corrections has been provided by this trendline multiple times in the past.

Multiple traders alongside analysts provided their predictions after the market dip occurred. According to prominent crypto trader IncomeSharks this market decline creates room for buyers to enter positions ahead of an expected Ethereum price rise above $3,000.

Additionally, according to BecauseBitcoin CEO Max Schwartzman, long-term investors should wait patiently because Ethereum demonstrated its ability to recover previous price points.

ethereum price
Source: X

Furthermore, Into The Cryptoverse founder Benjamin Cowen highlighted that Ethereum’s present market value resides on its long-term basis regression trendline.

ETH price previously underwent such a downward movement yet returned with a robust recovery that drove its price toward all-time high levels during late 2021.

Meanwhile, recent analysis showed that Ethereum’s MVRV ratio had dropped below the 160-day moving average, a historically bearish signal.

The last time this occurred, ETH fell 40%. Additionally, rising ETH supply raises concerns, as it may suppress prices if demand fails to match the increasing issuance in the market.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

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