Ether’s (ETH) slide below $2,000 on Friday increased the risk of a deeper correction over coming weeks or months.
Key takeaways:
– Ether’s price shows structural weakness after failing to hold the $2,000 psychological support.
– Analysts say ETH could drop further toward the $1,750–$1,850 support zone.
– Ether’s demand has turned negative, raising downside potential.
Ether traders anticipate a deeper correction
TradingView data showed ETH/USD trading around $1,975, down about 5% over 24 hours, accompanied by more than $111 million in long ETH liquidations. The pair had failed to break resistance near $2,200 earlier in the week as spot ETH ETF outflows, falling DEX volumes and a declining futures premium weighed on the recovery.
Traders noted thin short-term demand despite positive long-term narratives. Analyst CryptoWZRD warned ETH could fall further toward the $1,800 area after closing below $2,200. Ted Pillows said the drop below $2,100 signaled weakness and suggested a move toward $1,800 before any rebound. A close below the 50-day simple moving average (around $2,000) could pull ETH to $1,900 and then into the $1,850–$1,750 range.
Ether’s apparent demand hits 16-month low
Capriole Investment’s Ethereum Apparent Demand metric turned negative on March 3 and hit a low near -58,000 ETH on March 16, its weakest reading since October 2024. At the time of reporting it had improved to about -23,475 ETH. The negative reading reflects a risk-off stance amid geopolitical uncertainty and macro headwinds.
Spot ETH ETFs recorded seven consecutive days of net outflows totaling $391.8 million. Global Ether exchange-traded products also saw $27.2 million of outflows last week, underscoring reduced institutional appetite.
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