Ether Falls 20%, Raising Concerns Over the End of Its Bull Streak

Ether’s 20% Drop Breaks Multi-Year Trendline, Raising Bear Market Fears

Ethereum’s native token, Ether (ETH), has slipped below a crucial trendline that had supported its price since the 2022 Terra collapse, signaling a potential shift in market dynamics.

ETH tumbled nearly 20% in the week ending March 9, marking its steepest weekly decline since November 2022, according to TradingView data.

This sell-off has resulted in a decisive break below a key bullish trendline that originated from Ethereum’s post-Terra lows in mid-2022. The violation of this long-standing support suggests that the nearly three-year uptrend may be over, with analysts now eyeing potential declines toward the September-October 2023 lows near $1,500.

Trendline Breakdown: A Bearish Signal?

Trendlines serve as a visual representation of market sentiment, reflecting where traders are allocating funds. A long-term ascending trendline typically indicates strong demand and upward momentum, but when breached, it often triggers further selling.

ETH’s breakdown suggests that buyers are losing control, giving way to increased bearish sentiment. Such moves often lead to further liquidations as traders adjust their positions in anticipation of more losses.

What’s Next for ETH?

Ether’s decline not only shattered its three-year trendline but also breached a crucial support level at $2,100—an area where buying interest had previously prevented deeper corrections since August.

If selling pressure continues, ETH could test the $1,500 support level. On the other hand, a recovery above last week’s high of $2,523 would be necessary to restore bullish confidence and reestablish upward momentum.

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