ETH Price Plunges: Key Levels to Watch

Ethereum (ETH) experienced a sharp price drop below $1,600 over the weekend, following Bitcoin's decline below the significant $80,000 mark. This downturn triggered significant liquidations across the altcoin market, impacting ETH considerably.

Ethereum Dips Below $1,700

The bearish trend extended from the US trade war into the crypto sector. On April 6th, ETH reached a three-week low near $1,650, representing an 11.24% drop within 24 hours. This wiped out nearly all of the previous week's gains, which had followed a brief surge above $1,770.

Data from CoinMarketCap confirms this 11% downtrend, marking its lowest intraday price since mid-March. The initial bullish momentum evaporated as Bitcoin failed to maintain upward pressure, leading to widespread losses in the crypto ecosystem.

Critical Support Levels and Liquidations

Coinglass data reveals over $164.7 million in ETH long liquidations in the past 24 hours, second only to Bitcoin's $203.7 million. A significant portion of these liquidations occurred during Sunday's price drop, highlighting the leveraged nature of many ETH positions.

The Coinglass heatmap pinpoints a key support zone around $1,550–$1,570, with over $76.2 million in long positions at the $1,554 level. A successful defense of this level could trigger a recovery as bargain hunters enter the market. However, a break below this level could lead to a steeper correction toward $1,480 or even $1,420.

Ethereum Price Forecast: Bearish Outlook

The Ethereum price forecast remains cautiously bearish, with ETH falling 11.73% to $1,594—its largest single-day loss in over a month. The rejection near $1,800 and the break below the Volume Weighted Average Price (VWAP) at $1,655 confirm this downward momentum. ETH is now trading below its 8-EMA and 21-EMA.

The daily Relative Strength Index (RSI) stands at 28.59, indicating oversold conditions. While a short-term bounce is possible, the overall trend remains weak. The price is below both the 50-day SMA ($1,787) and the 200-day SMA ($1,894), significant resistance levels.

Holding the $1,555 level is crucial. Failure to do so increases the risk of testing $1,480. Until Bitcoin reclaims $80,000, Ethereum's outlook remains uncertain. A recovery hinges on buyers reclaiming $1,655 and maintaining momentum above short-term EMAs.

Frequently Asked Questions (FAQs)

• What caused Ethereum's price drop? Ethereum followed Bitcoin's weekend decline, due to broader market liquidations and negative macroeconomic sentiment.
• What is the key support level for ETH? The $1,554 level is crucial, with significant long liquidations concentrated there.
• Is a recovery possible? Yes, if ETH holds above $1,554 and Bitcoin stabilizes, a technical bounce is possible.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Market conditions change rapidly; conduct thorough research before making any investment decisions.