Ethereum (ETH) has dropped nearly 10% in the past 24 hours, falling from $2,721 on February 24 to $2,313 earlier today. According to crypto analysts, $2,300 is the next critical support level – if ETH fails to hold this level, it could face further losses.
Ethereum Crashes Amid Crypto Market Sell-Off
The broader crypto market has endured a tumultuous 24 hours, shedding nearly 10% of its total market cap – approximately $300 billion in value. Amid the downturn, ETH’s market cap has plummeted from $340 billion to as low as $286 billion in just two days.
Crypto trader Merlijn The Trader shared their insights on ETH’s price action in an X post, noting that ETH is currently testing the 50-day Simple Moving Average (50 SMA) – a level they describe as the “make-or-break” zone for the asset.
The analyst emphasized the importance of ETH holding the $2,350 price level, warning that a breakdown below this level could get “ugly.” If Ethereum fails to maintain support, it could drop significantly, with the next major support level near $1,100.
Fellow crypto analyst Ali Martinez echoed Merlijn’s concerns, highlighting $2,300 as a crucial support level for ETH. According to the following 3-day chart, this level is near the bottom of the trading channel that ETH has been moving within since November 2024.
Meanwhile, Daan Crypto Trades pointed out that ETH has repeatedly failed to break through resistance at $2,800. They noted that after Bybit announced it would restore users’ ETH balances following the recent hack, ETH experienced a sell-off. They added:
This cycle, both $BTC & $ETH have reacted well around the .786 levels so I’m keeping an eye on this area here. BTC also just swept the range lows. The larger range between ~$2.1K-$2.8K remains the most important one. Anyways, currently just holding spot and not doing much.
Is The Altseason Dead?
ETH’s prolonged poor performance has cast doubt on the possibility of a full-blown altseason. For the uninitiated, altseason refers to a market phase where altcoins – cryptocurrencies other than Bitcoin (BTC) – deliver extraordinary returns in a short period.
While market sentiment surrounding ETH may be far from bullish at the moment, some industry leaders remain confident in a strong rebound for the leading smart contract platform.
In an X post, CryptoQuant CEO Ki Young Ju noted that there was no significant Ethereum selling pressure following the Bybit hack. He also suggested that favorable crypto regulations under US President Donald Trump could trigger a “large-cap ETF altseason,” potentially driving ETH’s price higher.
Similarly, crypto analyst Ted provided some optimism for altseason enthusiasts. Sharing the following weekly chart, Ted highlighted that the altcoin market cap has formed its first golden cross since Q1 2021. He added:
The last time this happened, Altcoin market cap pumped 500% in just a few months. It looks like altseason will soon become a reality. Do you bullieve?
That said, recent on-chain analysis does not inspire much confidence in ETH’s short-to-medium-term price action. At press time, ETH is trading at $2,418, down 9.5% in the past 24 hours.
Featured Image from Unsplash.com, Charts from X and TradingView.com
