Ether’s 20% Plunge Breaks Key Support, Ending Nearly 3-Year Bull Run
Ether (ETH), the native cryptocurrency of the Ethereum blockchain, has fallen below a critical trendline that had been intact since the aftermath of the 2022 Terra crash, signaling a potential end to its multi-year bullish trajectory.
Over the past seven days leading up to March 9, ETH tumbled nearly 20%, marking its steepest weekly decline since November 2022, according to TradingView data.
The sell-off breached a pivotal bullish trendline that originated from Ethereum’s post-Terra collapse lows in June 2022—a level that had previously served as a strong support for nearly three years.
With this breakdown, ETH’s long-standing uptrend appears to have come to an end, shifting market sentiment toward deeper losses. Analysts now eye potential downside targets near the September-October 2023 lows around $1,500.
The Significance of Trendline Breakdowns
Trendlines provide insights into investor sentiment and potential price movements. A rising trendline suggests sustained demand, reinforcing upward momentum. However, once breached, it often signals a shift in market dynamics, with selling pressure overwhelming buyers.
In ETH’s case, the breakdown of this multi-year trendline suggests waning demand and a possible transition to a bearish market structure. Such breaches can trigger further sell-offs as traders react to the shift in sentiment.
What’s Next for Ether?
Ether’s sharp decline not only violated its long-standing trendline but also broke through crucial support at $2,100—a level that had previously indicated seller exhaustion since August.
Looking ahead, the next key support lies around $1,500, while for bulls to regain control, ETH would need to reclaim the past week’s high of $2,523.
