Ethereum Plunges Below $2K, Analysts Warn of $1,500 Target

Ethereum’s price action turned decisively negative this week, with the cryptocurrency dropping over 9% in a single day to breach the $2,000 support level for the first time since May. This breakdown pushed ETH to an eight-month low of $1,934, extending a brutal correction that has seen its value decline by over 60% from its all-time high of $4,956 set in August. The move places ETH firmly in the lower half of its two-year macro trading range, a zone it has occupied for half of the current market cycle, according to analyst Daan Crypto Trades.

The loss of the $2,000-$2,100 area has analysts warning of further downside. Daan Crypto Trades emphasized the clarity of horizontal support and resistance levels on Ethereum’s chart, stating, “Break one, target the next.” His analysis suggests that failure to quickly reclaim the $2,000-$2,100 region would likely lead to a retest of the $1,800 area, which previously served as a breakout point before a major rally. The outlook grows even more concerning when considering longer-term metrics. Analyst Altcoin Sherpa noted that ETH’s chart “looks bleak” after it lost the 200-Week Exponential Moving Average (EMA). He warned that officially losing the $2,000 barrier could see Ethereum plummet toward its April 2025 lows, located in the $1,400-$1,500 range, labeling the current price action a “do-or-die” scenario similar to Bitcoin’s.

The violent price drop has had immediate and severe consequences across the market. Data from CoinGlass reveals that Ethereum liquidations totaled a staggering $326.6 million over a 24-hour period. Of that sum, approximately $245.5 million came from long positions, with nearly half of that value wiped out in just the last four hours of trading, underscoring the intensity of the sell-off.

The pain extends to institutional products as well. Spot Ethereum exchange-traded funds (ETFs) experienced significant negative pressure, bleeding nearly $80 million in outflows on Wednesday alone. Over the first three trading days of the week, the category saw total net outflows of $68 million, reflecting a loss of confidence among traditional market participants. However, the most eye-catching casualty may be BitMine, the world’s second-largest crypto treasury. The firm’s unrealized losses on its Ethereum holdings have ballooned amid the decline, surpassing $8 billion after ETH broke below $2,000. Reports indicate that if BitMine were to sell its position at current levels, the loss could rank as the fifth-largest documented principal trading loss in history.

Despite the alarming price action and mounting paper losses, a fundamental bullish narrative persists among some key industry figures. BitMine’s chairman, Tom Lee, directly addressed the market turmoil, reiterating the firm’s confidence in Ethereum. “We view this pullback as attractive, given the strengthening fundamentals,” Lee asserted in the company’s latest update. He argued that the current price of ETH does not reflect its high utility or its envisioned role as a cornerstone of the future financial system.

This stance creates a stark contrast between the technical breakdown described by analysts and the long-term fundamental conviction held by major holders. The market now faces a critical test: whether the underlying utility and adoption thesis for Ethereum, as championed by entities like BitMine, can withstand the severe technical damage and overwhelming selling pressure. The coming days will determine if the $2,000 level can be reclaimed to avert a deeper fall, or if the bearish targets of $1,800 and ultimately $1,500 will come into play, validating the warnings from chart analysts and deepening the crisis of confidence in the crypto asset.