Summary: Ethereum dipped below the important $2,000 mark, losing 5.5% over 24 hours and its weekly decline to nearly 20%. The market decline follows an Executive Order signed by then-U.S. President Donald Trump establishing a Strategic Bitcoin Reserve. With increasing institutional investment in Bitcoin, governments’ inability to make outright buys infuriated traders, leading to a broad crypto sell-off.
Ethereum hit $1,999 during Monday’s Asian session, holding off key levels. The analysts say ETH has not been able to breach long-term resistance levels, with the quarterly SuperTrend indicator being one significant barrier. ETH could continue falling to $1,105 if demand stress continues.But on-chain data shows that large investors have been purchasing ETH, with over 330,000 ETH purchased within the past 48 hours.
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Despite the bearish signals, a potential Wyckoff reaccumulation phase suggests a potential rally in the near term. To change bullish, Ethereum needs to reclaim $2,125, which can push it up to $2,359. Maintaining current support levels is crucial in preventing further drops.
