Ethereum Retests February Lows, $1,500 Breakdown Scenario in Play

▲ Ethereum (ETH) / ChatGPT-generated image

Ethereum (ETH) is facing growing concerns that it could fall further to the $1,500 level, as it retests this month’s low amid persistent selling pressure and weak demand.

According to crypto-focused outlet The Crypto Basic on February 24 (local time), Ethereum continued its downward trend, trading at $1,828, down 2.87% over the past 24 hours. Although there was an early attempt to hold above the $1,900 level, heavy selling pressure broke the $1,880 support line, pushing the price down to around $1,820 during intraday trading. While slight signs of price stabilization have emerged, they remain insufficient to reverse the short-term bearish trend.

Market data highlights significant volatility in the futures market. Over the past 24 hours, Ethereum futures trading volume reached $51.19 billion, far surpassing spot trading volume of $3.38 billion, indicating that leveraged speculative trading is dominating the market. Ethereum’s open interest also stands at $23.38 billion, suggesting that large derivative positions are being maintained even as prices decline.

From a technical analysis perspective, Ethereum has experienced a steep decline from its mid-January high of $3,399, breaking below key Fibonacci retracement levels of 0.618 ($2,768), 0.5 ($2,573), and 0.382 ($2,378). The current price is consolidating near the $1,747 low. However, unless it reclaims the 23.6% Fibonacci retracement level at $2,136—which has now turned into strong resistance—the downtrend is likely to persist. Indicators also show that the True Strength Index remains in negative territory around -35, signaling that bearish momentum is still in play.

Crypto analyst Ted noted on social media that despite Ethereum dropping to around $1,800, meaningful buying pressure has yet to emerge. He argued that the market has not yet established a definitive bottom and predicted that Ethereum could undergo a liquidity sweep of this month’s low before a genuine rebound begins. In this process, the price could fall to the $1,500 level before a technical recovery takes shape.

If a recovery materializes, Ethereum will first need to overcome resistance at $2,097. Even if that level is broken, heavy supply zones near $2,400 and $2,800 are expected to pose significant challenges. For now, there are few signs of stabilizing downward momentum, and caution over further downside volatility is warranted until strong demand support is confirmed.

Ultimately, the key factor in Ethereum’s short-term trajectory will be whether it can defend the crucial $1,747 support level and attempt to reclaim resistance at $2,136. Investors should closely monitor the unwinding of excessive leverage in the futures market and watch for tangible buying interest around the $1,500 level, exercising thorough risk management.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses arising from its use. The information provided should be interpreted for informational purposes only.*