Altcoins Catch a Cold as Bitcoin Sneezes… How Far Can Ethereum Fall Amid Vanishing Buying Pressure?

▲ Ethereum (ETH) and Bitcoin (BTC)

Ethereum (ETH), swept up in the wave of extreme fear and broad risk-off sentiment blanketing the market, is teetering on the brink of breaking below the $2,000 level despite the absence of any specific negative catalyst.

According to CoinMarketCap on Feb. 27 (local time), Ethereum fell 3.34% over the past 24 hours to $2,029.50, moving in line with the broader market downturn. This mirrors Bitcoin (BTC)’s 2.14% decline and a 2.38% contraction in the overall cryptocurrency market capitalization, underscoring the rapid reduction of risk exposure among investors from a macro perspective.

Behind the current decline, there are no clear internal catalysts within the Ethereum ecosystem, such as critical flaws or protocol issues. Trading volume has also dropped 7.65%, indicating that both buyers and sellers lack conviction on direction. Meanwhile, the Crypto Fear & Greed Index remains at 16—signifying “extreme fear”—with the compressed market sentiment exerting greater volatility on high-beta assets like Ethereum.

Technical indicators are also adding significant weight to short-term downside pressure. Ethereum is currently trapped in a narrow range between its 7-day simple moving average (SMA) at $2,013.59 and its 30-day SMA at $2,053.51. In particular, the MACD histogram has fallen to negative 7.9, confirming strong bearish momentum. While it has not yet entered a full free-fall phase, continued struggles below neutral levels appear likely in the near term.

Market experts point to the defense of the 7-day SMA at $2,014 as the first critical inflection point determining Ethereum’s short-term trajectory. If the price firmly holds this key support on a daily closing basis, it could stabilize and consolidate. However, if this level breaks, selling pressure may accelerate uncontrollably, posing a severe risk of a sharp decline toward the 200-day SMA at $1,948 and the secondary support zone between $1,950 and $1,970. Ultimately, analysts suggest that only a decisive move by Bitcoin above $68,500—establishing a solid market floor—would enable Ethereum to escape the current sell-off spiral.

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