Ethereum is approaching a significant milestone as it nears a two-year low for its weekly closing price. The cryptocurrency’s value plummeted to $2,070, marking its lowest since January 1, 2024. Over the past seven days, Ether has suffered a 24.50% drop, its worst weekly performance since 2022. If the double-top pattern materializes, Ethereum might face an additional 30% decline to $1,500. Consequently, maintaining the $2,000 level is crucial for market bulls.
The altcoin is already poised to close below its 200-week exponential moving average (EMA), a critical indicator that has historically aligned with Ethereum’s lower price range. Since 2020, ETH has closed below this average merely 14.55% of the time. Historical patterns suggest Ethereum could recover above the EMA in the coming weeks, but investors are wary. A closing price below $2,100 would validate the double-top pattern, potentially sending the price plummeting to the next support level of $1,500.
Despite this, Glassnode data highlights that Ethereum’s cost-basis distribution price stands at $1,890. This metric suggests Ethereum might revisit this price point if current market weakness continues. Crypto trader Morin emphasizes that a demand zone exists between $2,100 and $1,900, indicating a potential containment of price decreases within this range. Meanwhile, Leon Waidmann from OnchainHq notes that exchange balances are declining, implying sustained investor confidence in Ethereum as they accumulate at crucial demand zones. Nevertheless, Ether must surpass the $2,000 mark to quash concerns regarding the double-top pattern threatening its stability.
