Ethereum (ETH) Price: Can the $1,600 Support Zone Save ETH From Further Decline?

TLDR

Ethereum has fallen below its 2-year realized price of approximately $2,058, putting most investors underwater
ETH is trading between $1,750-$2,000 with significant resistance at the $1,890 and $1,950 levels
Only 47% of Ethereum holders remain in profit according to CryptoRank data
A major Ethereum whale faced liquidation risk on 67,675 ETH ($121.8 million) when prices dipped under $1,800
Analysts suggest ETH may test support in the $1,600-$1,800 range before any potential rebound

Ethereum has dropped below the $2,000 level, a price point that served as key support throughout most of 2024. The second-largest cryptocurrency by market cap is now trading around $1,904, marking a steep 30% decline since a tweet from Eric Trump suggested it was “a great time to add ETH.”
The price movement has been marked by high volatility. In just 24 hours, ETH swung between a low of $1,760.94 and a high of $2,006.69, creating difficult trading conditions for investors.
EthereumETH Price
This drop isn’t just another price fluctuation. Ethereum has now fallen below its realized price of approximately $2,058 for the first time in two years, according to data from Glassnode.
The realized price represents the average price at which ETH holders purchased their coins. When the market price drops below this level, it means the average investor is holding at a loss.
Glassnode reports that the Market Value to Realized Value (MVRV) ratio has decreased to 0.93. This indicates Ethereum investors are experiencing an average unrealized loss of 7%.
When this situation occurs, traders typically hold their coins rather than selling at a loss. This creates a lack of selling pressure but also reduces buying activity due to investor hesitation.
Data from Lookonchain shows Ethereum is experiencing notable outflows. In a single day, a net 16,179 ETH (worth about $30 million) left exchanges.
Fidelity alone withdrew 12,744 ETH ($23.61 million). This suggests even institutional investors are becoming more cautious about their Ethereum holdings.
Fidelity still maintains a substantial position of 422,325 ETH ($782.57 million). However, these recent outflows point to a shift in market sentiment.
Technical Analysis
Technical analysis shows Ethereum is facing strong resistance at several key levels. There is a bearish trend line with resistance at $1,890 on the hourly chart.
The next major resistance level sits near $1,950, coinciding with the 50% Fibonacci retracement level of the recent downward movement. Breaking above this could open the path toward $2,000.
If Ethereum fails to clear the $1,890 resistance, analysts expect another decline. Support levels are positioned at $1,845, $1,800, and $1,750.
According to analyst Ted Pillows, Ethereum is likely heading toward the $1,600–$1,800 range. This area has historically been an important support zone for ETH price action.
The declining price has severely impacted investor profitability. CryptoRank data shows only 47% of ETH holders are currently in profit, compared to much higher percentages when ETH traded above $3,500.
The sell-off is triggering liquidations among leveraged traders. Whale Alert recently identified a major Ethereum investor at risk of liquidation on 67,675 ETH ($121.8 million) when prices fell below $1,800.
Despite attempting to avoid liquidation by depositing additional collateral, the investor reportedly faced a massive liquidation event as prices continued to decline.
Not all perspectives are negative. Trader Tardigrade noted that ETH has reached a monthly oversold condition on the Stochastic indicator, an event that occurs approximately every three years.
Historically, these oversold levels have marked major bottoms followed by strong recoveries. If this pattern repeats, Ethereum could be preparing for a significant rebound.
Ethereum co-founder Joe Lubin maintains optimism about the token’s future. Despite current market challenges, he reportedly stated he has “perhaps never been more bullish” on Ethereum’s prospects.
The post Ethereum (ETH) Price: Can the $1,600 Support Zone Save ETH From Further Decline? appeared first on Blockonomi.