Ethereum loses $2.8K support as charts point to possible 22% downside
The market value of the second largest cryptocurrency Ethereum continued to decline, falling below the key psychological mark of $2,800. According to CoinTelegraph, this drop occurred against the backdrop of technical analysis signals and blockchain metrics suggesting elevated downside risks for the ETH price.
Technical analysis hints at potential 22% decline
According to analysts, the daily charts of Ethereum have formed a "double top" pattern, which signals a reversal of the uptrend. This creates the prerequisites for a possible drop in the coin's price to the $2,100 area, which is about 22% from current levels.
Blockchain data points to persistent risks
In addition, the market is showing a number of worrying on-chain signals. In particular, there is a decrease in the activity of large Ethereum holders, which may indicate their unwillingness to increase positions at current levels. There is also an increase in the number of "young" ETH coins held in "cold" cryptocurrency wallets, which can also be interpreted as a sign of weakening buyer demand.
Conclusion
Thus, a combination of technical and on-chain factors points to the persistence of risks of further decline in the Ethereum exchange rate in the short term. Investors should exercise caution and closely monitor the situation to be able to respond in a timely manner to changes in market conditions.