- ETH Drops 60% From Peak, Breaks Major Supports
- $367M Liquidated as Bearish Momentum Builds
- Fear Index Hits 27, Traders Brace for More Pain
The Ethereum market extended its downward movement to settle at $1,569 with a 13% decline across the previous day. The overall crypto market has also moved lower, with the total market cap down by over 6%. Ethereum’s technical indicators maintain a negative momentum as essential support areas face testing. Trading activity has surged, and on-chain data suggests increased market caution.
Technical Breakdown Points to Further Weakness
The Ethereum price has declined beneath multiple vital technical levels which now raises possibilities for greater depreciation toward $1,500 or lower price zones. After reaching $4,098 in December, Ethereum has dropped over 60%, forming a triple-top pattern with a neckline at $2,140. The price has also broken below the 61.8% Fibonacci retracement level at $1,935, which is often considered a key area for price support.
Both trading indicators the Relative Strength Index (RSI) and the Stochastic Oscillator show decline in current market conditions. The Average Directional Index (ADX) is now at 30, which suggests a strong bearish trend. Ethereum has also crossed below the 50-week and 100-week exponential moving averages, reinforcing the negative sentiment among technical traders.
Analysts from Bit Bull confirmed a bearish breakdown from a symmetrical triangle pattern once ETH dropped under $1,820. This pattern, combined with low trading volume and repeated support failures, points to a possible move toward $1,300 in the medium term.
On-Chain and Market Sentiment Show Weak Confidence
Ethereum has recorded over $367 million in liquidations in 24 hours, reflecting sharp market reactions. Spot ETFs saw outflows of $49.93 million between March 31 and April 4. Grayscale’s Ethereum Trust led with $31.08 million withdrawn, suggesting weaker institutional support during recent volatility.
According to the current crypto fear and greed index reading of 27 the market displays indications of rising fear from investors. Ethereum’s on-chain activity has also declined, with fewer active addresses and a slowdown in burned fees.
While whales have been buying the dip, Ethereum’s recovery may depend on external factors such as the upcoming Pectra upgrade, which could help stabilize prices if launched soon.
