Ethereum Faces a Brutal Year of Decline: “Break Below $1,800 Is Just the Beginning”

▲ Ethereum (ETH), Bear Market, Decline / ChatGPT-Generated Image

Ethereum (ETH) has fallen below the psychologically significant $1,800 level, breaking its technical support base, and pessimistic outlooks dominate the market, suggesting that the momentum of selling pressure driving the downturn is unlikely to subside anytime soon.

According to cryptocurrency-focused media outlet Cointelegraph on February 25 (local time), Ethereum recently dropped below $1,800, facing the risk of further sharp declines after breaking a long-term support line. On-chain data analysis indicates that selling activity leading the bearish trend remains active, while the market’s fundamental strength has weakened rapidly. In particular, inflows of Ethereum to major exchanges have not decreased, suggesting it may take considerable time for selling pressure to ease.

Key on-chain indicators, including the Market Value to Realized Value (MVRV) ratio, suggest that Ethereum has not yet reached a bottom. Investors who were previously in profit territory are capitulating and offloading holdings to avoid losses, further accelerating price declines. Market experts assess that the current downturn is likely more than a simple correction and could represent a structural trend reversal, urging investors to exercise extreme caution.

From a technical perspective, Ethereum faces strong resistance at the $2,000 level, while on the downside there is a support gap extending to around $1,500. With the weekly closing price remaining below major moving averages, there are no clear signs of a technical rebound, intensifying market fear. Analysts note that in order for buyers to trigger a meaningful recovery, a strong reclaim of key support levels accompanied by significant trading volume is required; however, at present, selling pressure remains overwhelmingly dominant.

Liquidity drying up across the broader digital asset market and ongoing macroeconomic uncertainty are also weighing on Ethereum. Major assets, including Bitcoin (BTC), have declined in tandem, pushing risk-off sentiment to extremes, which has dealt an even harsher blow to the relatively more volatile altcoin Ethereum. Investors are bracing for further price declines by increasing cash positions or employing hedging strategies through derivatives markets as they navigate a prolonged downturn.

Declining activity within the Ethereum ecosystem and a slowdown in new capital inflows are raising doubts about its long-term growth drivers. Reports of asset movements by founder Vitalik Buterin have further shaken confidence within the community, and with technical indicators also pointing downward, market pain appears likely to continue for the time being. If Ethereum fails to reclaim the $1,800 level and tests the $1,500 range, the risk of widespread liquidations across the market will remain significant.

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