Red alert: Ethereum price could crash to $1500 if it losses key support

Ethereum price has declined for three consecutive days, forming a death cross pattern and risking a drop to $1,500.

Ethereum (ETH) fell to $2,430 on Wednesday, down more than 40% from its highest level in November. The coin has dropped and underperformed Bitcoin (BTC) and other major altcoins as exchange-traded fund inflows slowed and challenges within the ecosystem persisted.

Data from TokenTerminal shows that the fees generated by Ethereum have continued to decline in recent months. The network earned $9.8 million last week, significantly lower than last year’s weekly high of over $217 million. Networks such as Tron (TRX), Jito (JTO), Solana (SOL), and Uniswap (UNI) have surpassed Ethereum in fee generation this year.

Ethereum’s position in decentralized finance has also weakened, with total value locked dropping 12.5% in the past 30 days to $54.32 billion. It remains the largest player in the sector, with the stablecoin market capitalization rising to $121 billion.

You might also like: Avalanche introduces Visa crypto card for seamless global spending

Ethereum has also lost market share to its layer-2 networks, including base, arbitrum, and optimism, which now process substantial transaction volumes. For example, Coinbase’s Base oversaw more than $7.4 billion in cryptocurrency volume in the past seven days, while arbitrum recorded $5.7 billion. Previously, this volume would have been processed on Ethereum.

Ethereum price may crash to $1,500

ETH price chart | Source: crypto.news

The daily chart shows that Ethereum has formed a series of lower lows and lower highs in recent weeks. The price has fallen from $4,000 in November to $2,400, forming a death cross pattern as the 200-day and 50-day moving averages intersect.

Worse, Ethereum has dropped below the 61.8% Fibonacci retracement level, a zone where most pullbacks typically occur. It has also moved below the oversold level of the Murrey Math Lines indicator.

As a result, there is a risk that Ethereum will fall around 35% to $1,530, marking its lowest price since October 2023. The likelihood of this red crash warning would increase if Ethereum falls below the current support level at $2,130, the lowest point reached in August.

You might also like: Ethereum Foundation to donate $1.25 in support of Alexey Pertsev legal defense

Source