Ethereum’s price remains in a deep bear market after plunging more than 53% from its November high.
Ethereum (ETH) has crashed below the crucial support at $2,000, and is hovering near its lowest point since November 6.
The ongoing crash happened as demand for the coin waned in Wall Street. All spot Ethereum ETFs have had outflows in the last three consecutive weeks, bringing the cumulative net inflow to $2.52 billion. Total assets have dropped to about $6.72 billion.
Ethereum’s decline has also been fueled by growing fear in the crypto market. The closely watched crypto fear and greed index has dropped to the fear zone of 21. Bitcoin (BTC) and other altcoins tend to underperform when investor sentiment is weak.
The recent ETH token sales by Ethereum Foundation have not helped. Just last week, Harikrishnan Mulackal, an ex-engineer at the foundation, warned that Ethereum’s future was at risk without clear leadership.
Ethereum network has continued to face substantial competition from other layer-1 chains like Solana (SOL) and BSC Chain. According to DeFi Llama, DEX protocols on Ethereum handled $1.012 billion in token volume on Monday, lower than BSC’s $1.63 billion and Solana’s $1.077 billion.
Ethereum price has formed another risky pattern
The ongoing ETH price crash happened after it formed a triple-top pattern on the weekly chart. This pattern has three peaks and a neckline, which in this case, was at $2,126.
Ethereum also formed a death cross on the daily chart when the 50-day and 200-day moving averages crossed on February 13. A death cross is considered one of the riskiest patterns in technical analysis.
Now, ETH is slowly forming another bearish pattern — a pennant. This formation consists of a long vertical line followed by a symmetrical triangle. The triangle is nearing its confluence point, suggesting that a bearish breakdown could happen soon.
Therefore, a drop below the year-to-date low of $1,757 could signal further declines to the psychological level of $1,500.
A potential catalyst that may boost Ethereum’s price this week is the upcoming Federal Reserve interest rate decision on Wednesday. A dovish tone from the Fed could lift ETH and other cryptocurrencies.
