Ethereum in deep red: from technical collapse to support search

The past few weeks have brought severe turbulence to Ethereum, painting the charts in deep red with declines that surpass the overall market’s bearish performance. ETH’s price has collapsed from $2,809 to levels no one wanted to see, and technical indicators are flashing warning signals. With the current price hovering around $2,130 after a significant drop, it’s time to understand what’s really happening on the charts and where the numbers are pointing.

The Break of the 50-Week EMA: Technical Turning Point

The chart tells a clear story: Ethereum has just broken a historic support line that has always served as its cushion. The 50-week Exponential Moving Average (EMA) has traditionally been the floor where ETH bounced to continue its ascent, but that changed. The breakdown of this yellow line is decisive: sellers took full control while buyers disappeared from the table.

When the price crosses these key technical lines with such decisiveness, the market’s message is unambiguous: we are in genuine sell territory, not just a minor correction. The RSI still doesn’t hit the absolute bottom, but weakness is evident. Ethereum is trading below almost all its major moving averages, and the MACD in negative territory confirms the bearish momentum. This is a snapshot of a market that has lost its bullish references.

The Domino Effect: How Bitcoin Triggered On-Chain Liquidations

The main cause has a name: Bitcoin. The king of cryptocurrencies suffered a “death cross” (when the 50-day moving average falls below the 200-day), dropping from $84,000 to the current $70,600. This move triggered cascading liquidations of over $800 million in leveraged positions, especially affecting traders operating with margin.

As ETH and BTC move hand in hand, Ethereum was dragged downward without remedy. Support levels once considered unbreakable began to give way one after another. The market realized that we’re not fighting to hold $3,000; the battle is now for much deeper levels. Bitcoin at $70,600 generated the massive panic that liquidated positions and volatilized confidence across the entire crypto ecosystem.

Critical Supports and the $1,500 Scenario: Opportunity or Trap?

Technical analysis projects a frightening scenario: if Ethereum fails to quickly recover the key resistance at $2,983, the path to $2,785 is completely clear. From there, gravity takes over unopposed: the projection points directly to the $1,500 zone, the coin’s historic “cushion.”

Is this a buying bottom for those who missed out? The answer isn’t simple. Indicators are still in extreme bearish territory, suggesting there’s more fuel in the sellers’ tank. However, levels as deep as $1,500 have historically been turning points where institutional buyers re-entered strongly.

The current price at $2,130 still reflects some relative stability, but Bitcoin’s move to $70,600 keeps the downward pressure. Everything depends on whether the market finds a catalyst for recovery or if the liquidation continues down to deeper psychological supports. We are in a “wait and see” moment, where the numbers will dictate the next move.