Ethereum Plunges Below $2,000 in Sudden Crash as Investors Dump Holdings

▲ Ethereum (ETH)

Ethereum (ETH) has finally surrendered the psychologically significant $2,000 level, sending a dangerous signal that further declines may be imminent.

According to cryptocurrency media outlet NewsBTC on February 12 (local time), Ethereum failed to withstand strong selling pressure and fell below the $2,000 support level. After trading sideways within a narrow range in recent days, Ethereum turned downward amid an overall market downturn that included Bitcoin (BTC). Analysts warn that this decline may mark the beginning of a long-term downtrend rather than a simple correction.

Technical indicators are also pointing to a bleak outlook. The Relative Strength Index (RSI) is approaching oversold territory, while the Moving Average Convergence Divergence (MACD) is reinforcing bearish signals. In particular, as Ethereum’s price has dropped below key moving averages, it is struggling to find short-term momentum for a rebound. With buying interest fading, concerns are growing that downside volatility could increase further.

Ethereum’s next support levels are set around $1,850 and $1,720. If selling pressure persists and the $1,700 level collapses, there is a strong possibility of panic selling across the broader market resembling a bank run. To recover, Ethereum would need to decisively break through the $2,120 resistance level, but prevailing views suggest that current low trading volumes are insufficient to overcome this barrier.

Market experts attribute the drop to a “sell-the-news” phenomenon following the approval of spot Ethereum ETFs, as initial optimism faded. With institutional capital inflows slowing and retail investor sentiment rapidly cooling, market turbulence is expected to continue for the time being. There is also a risk that support levels could be invalidated if large volumes are offloaded at once.

Ethereum is expected to engage in a fierce battle to reclaim the $2,000 level in the near term. Investors should closely monitor key macroeconomic indicators and prepare cautious strategies to protect assets against potential additional downside risks.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*