Ether’s (ETH) drop below $2,000 on Friday put it at risk of a deeper correction in the coming weeks or months.
Key takeaways:
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Ether price shows structural weakness as it fails to stay above the psychological support of $2,000.
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Analysts say that ETH price may fall further towards the $1,750-$1,850 support zone.
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Demand for Ether remains negative, increasing its downside potential.
Ether Traders Anticipate Deeper Correction
TradingView data showed that ETH/USD was trading at $1,975, down 5% in the last 24 hours. This drop was accompanied by over $111 million in ETH long liquidations.
Related: Bitmine launches institutional Ethereum betting platform
The pair had failed to break above the $2,200 resistance earlier in the week, as Ether exchange-traded fund (ETF) outflows, falling DEX volumes, and declining ETH futures premium derailed Ether’s recovery.
“$ETH continues to push towards the same resistance, but history lies behind the price action,” trader Onur said in an X post on Friday, adding:
“Even with strong long-term narratives, short-term demand still looks thin.”
Analyst CryptoWZRD said ETH could see a “further decline” towards the $1,800 support zone after the altcoin closed below $2,200 on Thursday.
“$ETH has fallen below the $2,100 level,” analyst and trader Ted Pillows said on Friday.
“This is a sign of weakness and shows what is coming next for ETH.”
An accompanying chart suggested that the price could first fall towards the $1,800 support level, before recovering.
As Cointelegraph reported, a close below the 50-day simple moving average at $2,000 can take the ETH/USD pair to $1,900 and subsequently to the $1,850-$1,750 level.
Ether Apparent Demand Hits Lowest Level in 16 Months
Apparent demand for Ether has turned negative after falling to its lowest level since October 2024, as traders adopted a risk-averse stance due to geopolitical uncertainty and macroeconomic headwinds.
Capriole Investment’s Ethereum Apparent Demand metric shows that demand for ETH has been negative since March 3, bottoming around -58,000 ETH on March 16, marking 16-month lows. The metric has since improved to -23,475 ETH at the time of writing.
Meanwhile, ETH spot ETFs have recorded net outflows for seven consecutive days, totaling $391.8 million.
Global Ether exchange-traded products (ETPs) also saw outflows of $27.2 million last week, reinforcing the reduced appetite for ETH among institutional investors.
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