Ethereum falls below $3,900, hitting two months’ low, raising concerns among crypto traders.
Ethereum was hit hardest with about $1 billion in crypto liquidation coming into the market.
Analyst Ted Pillow warns that ETH could drop to $3,500 before it begins recovery.
The huge crypto selling has once again shaken the market, pushing Ethereum, the second-largest cryptocurrency, down just two months, below $3,900. This has sparked concern among traders and investors as veteran crypto analyst Ted Pillow says ETH could drop even further and reach around $3,500 before beginning a recovery.
Ethereum leads in liquidation
The latest selloff was cruel. Ethereum was hit hardest this week as a crypto liquidation of about $1 billion hit the market. According to Coinglass data, Ethereum has wiped out roughly $312 million, most of which have been wiped out from its long positions.
In addition to the pressure, the report reveals that BlackRock sold $25.6 million worth of ETH, causing fear of further institutional exits. Even the options market data also reflects bearish sentiment, indicating that an increase in demand for PUT options further shows downside expectations.
According to Ted Pillow, Ethereum’s recent price action reflects Bitcoin’s 2020 cycle, with a 25%-30% drop following a breakout of over $20,000. He suggests that ETH could be reduced by an additional 10%-15%.
Ethereum price level to watch
Currently, Ethereum is approaching its main support zone, around $3,800. This is important in determining the short-term direction.
- If the $3,800 level is maintained, Ethereum can find stability and prepare for a fresh gathering.
- If it fails, the price could slide further towards the $3,500 area before finding stronger ground.
The pillow chart clearly highlights this battle zone, indicating that Ethereum’s next leg depends on whether the Bulls are able to defend their main support areas.
We aim for a long-term goal of $6,998
Despite recent turbulence, Ethereum’s fundamentals are still strong. Large institutions are still interested, and the network continues to grow and demonstrates long-term strength.
Crypto Analyst The House of Crypto focuses on the downward expansion wedges formed on Ethereum weekly charts.
For now, however, traders are closely monitoring their support levels of $3,800.
