Ethereum’s native token, Ether (ETH), posted a new yearly low at $2,070, which is also the lowest since January 1, 2024. The second-largest cryptocurrency dropped 7.40% on February 28, leading to over $200 million in liquidations over the past 24 hours.
With ETH price now testing two-year lows, 0xLouisT, a crypto investment manager, states that Ether’s social sentiment is “at its lowest in the past 12 months.”
Ethereum’s weekly close nears 2-year lows
Ether price is down 24.50% in the past seven days, marking its worst weekly turnover since 2022. A weekly close below $2,300 will signify its lowest since November 2023, a two-year low.
As illustrated in the chart, the top altcoin is also set to close below its 200-week exponential moving average (EMA). The 200-week EMA indicator has closely tracked Ethereum’s bottom range. Since 2020, ETH/USD has closed under the 200-week EMA level for only 39 weeks out of a possible 268, which is only 14.55% of the time.
Thus, based on historical trends, Ethereum might reclaim a position above the EMA level within a few weeks. However, a double-top pattern threatens the bulls. The 7-day chart also shows a double-top pattern taking shape over the past year. A close under $2,100 will validate the neckline, and any correction under $2,000 increases the chance of another 28% decline to the next support at $1,500.
Jason Pizzino, a crypto investor, also mentions that Ethereum could be “in more trouble” if it closes under the $2,000-$2,100 range. Thus, ETH must remain above $2,000 to invalidate this double-top pattern on the charts.
Ethereum cost-basis distribution price at $1.9K
Although Ether must stay above $2,000 to prevent further decline, Glassnode data indicates that the cost-basis distribution price is lower at $1,890.
The cost basis distribution (CBD) price of an asset isn’t a single fixed number but a range of prices reflecting when the ETH last moved on-chain. A $1,890 CBD price indicates that Ether could retest this value if price weakness persists.
Morin, a crypto trader, also underlined that a demand zone for ETH lies around $2,100 to $1,900. The trader expected the altcoin’s drawdown to be contained within this range once the bearish pressure subsides.
Conversely, Leon Waidmann, head of research at OnchainHq, suggested that ETH exchange balances continue to drop alongside price. The researcher suggests that investors potentially remain confident with ETH, accumulating at key demand zones as the price corrects.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.