On Feb. 24, Ether’s price slipped below $2,600 and has since struggled to stage a meaningful recovery. The recent drop toward the $2,000 mark triggered the liquidation of over $918 million in leveraged long positions in ETH futures within just 15 days. A clear lack of institutional interest is evident in spot exchange-traded fund (ETF) flows, which recorded net withdrawals of $406 million over the past 10 trading days, with outflows occurring on nine of those days. Additionally, weaker demand for blockchain transactions has slowed the burn-fee mechanism, turning Ether inflationary.
At the time of writing, ETH was trading at $1,862.
After reaching a high of $4,107, ETH began trading within a ‘Descending Channel.’ The asset eventually broke below the pattern, dropping to $1,754. Historically, ETH has found strong support around $1,750, and once again, prices have rebounded 5% from this key level. The lower long shadow near support suggests buying interest. If prices hold and sustain above $1,750, a relief rally toward $2,150 could be expected. However, if support is breached, ETH may continue its decline and test the $1,500 level.
Key Levels:
| Support 2 | Support 1 | Asset | Resistance 1 | Resistance 2 |
| $1,750 | $1,500 | ETH | $2,150 | $2,550 |
Unravel everything that you need for your crypto journey via ZebPay blogs. Get started today and join 6 million+ registered users on ZebPay!
