Ethereum Drops 51% in 3 Months and Holds $2,000 Support for Now

•  Ethereum only has seen a decrease of 51% in three months, and currently, it is testing out $2,000.
•  Should Ethereum remain above $2,000, it might soon hit $6,000.
•  Infraction going down below $2,000 may see the price of Ethereum trailing towards $1,500 as pressure builds.

Ethereum showed a decrease of 51 percent in three months. This indicates a very deep retracement condition. Now it trades at an approximate price of $2,136.91, just above a major support territory: between $2,000 and $1,900. This zone has been proven to be a very strong area for accumulation in previous declines. To sustain this level, an upward move toward $6,000, $8,000, or even $10,000 in the months ahead is still possible. However, if it breaks under the $2,000 mark, the market might see a really long decline while heading down to $1,500, thus making it a vital level for long-term positioning.  

Strong accumulation zone for Ethereum at $2000

The $2000-$1900 price action confirmed the area as an accumulation zone. In history, Ethereum has bounced off these kinds of levels in the past to make a run at fresh highs, thus this time is critical for traders. The price action has gotten to a point now as to where it will need the demand to surpass sell pressure if recovery is to happen. If this support level holds, Ethereum should be on a bounce back to test its next resistance near $4000 before attacking higher levels again.

The long-term chart for Ethereum shows that defending the $2000 could potentially lead to a rally toward the major resistance zones. The first major obstacle is between $4,000-$4,500 while breaking upward could see Ethereum rise as high as $6,000 and higher. Market sentiment is cautiously optimistic since earlier cycles have shown Ethereum gain momentum after consolidation in accumulation. Demand is enough, and an increase of up to $8,000 or even $10,000 is likely in the next market cycle. Ether should first demonstrate that it can maintain the current support.

Failing to maintain $2000 risk deep drops towards $1500.

Despite potential bullish scenarios, Ethereum is left open for a significant dip should it fail to defend the $2,000 support. Below this price level, further liquidation may strike, directing prices down to the next important support, which is $1,500. Historically, this has been a very strong buy area, which makes this key price level very crucial for long-term holders in particular. When Ethereum goes to this region, accumulation strategies would embrace the thinking that this would be a great price to pay in the end. The coming weeks will tell whether the frame straightens out for a strong bounce back or it begins serious corrections.