Ethereum Sheds 20%, Bringing Its 3-Year Bull Run to a Close

Ether’s 20% Drop Breaks Key Support, Raising Bearish Fears

Ether (ETH), the native asset of the Ethereum blockchain, has fallen below a crucial long-term trendline, raising concerns that its nearly three-year bullish streak has come to an end.

ETH plummeted nearly 20% in the week leading up to March 9, marking its worst weekly performance since November 2022, according to TradingView data.

The sell-off pushed prices below a major ascending trendline that had been intact since the aftermath of Terra’s collapse in mid-2022. This trendline had previously served as a strong support level, indicating steady demand over the past few years.

With this break, analysts are shifting their focus to potential further declines, with key downside targets now resting near the September-October 2023 lows around $1,500.

Why the Trendline Breakdown Matters

Trendlines serve as important indicators of market sentiment, showing where buyers and sellers are positioning themselves. A long-term rising trendline suggests sustained buying pressure, but once breached, it can signal a loss of momentum and an increase in selling activity.

ETH’s recent breakdown suggests that sellers are gaining control, potentially leading to further downside. Such trend reversals often encourage additional liquidations as traders reassess their positions.

Key Levels to Watch

Ether’s sharp decline not only broke its multi-year trendline but also pierced through crucial support around $2,100—a level that had previously limited sell-offs since August.

If bearish momentum continues, ETH could test the $1,500 support zone. On the upside, bulls would need to reclaim last week’s high of $2,523 to reestablish a bullish outlook.