Ethereum (ETH) is testing critical support levels as analysts warn of potential declines toward $1,500. The cryptocurrency, trading at approximately $2,056, faces pressure after a recent recovery lost momentum. Traders are closely monitoring the $2,040 level, with a break below potentially triggering a sharp downside move according to technical analysis.
Ethereum continued to face pressure as traders observed a critical support area after the latest price recovery lost steam. As of March 23, the token is trading at $2,056, marking a 2.45% decline for the day.
Crypto analyst Luca highlighted that he scaled out of hedges after ETH broke above the two-day bull market support band. “As long as it is holding above that price level, the more likely scenario is still a reversal to the upside,” he stated. He warned that a break below this support could reignite the downtrend.
In that bearish scenario, he expects ETH to reach high-timeframe support at $1,500. This would align with the early April 2025 bottoming formation observed in markets.
Another analyst, TedPillows, identified a head and shoulders pattern forming on the chart. “If the token loses this price, a big move down is likely,” he mentioned regarding the $2,040 level. This price point remains crucial for determining short-term direction.
Market data from CoinGlass shows increased activity despite the price uncertainty. Futures volume rose by 29.65% to $38.65 billion, while open interest grew slightly to $27.88 billion.
