Ethereum (ETH) has extended its decline, dropping below the $1,700 mark and now testing critical support near $1,500. The cryptocurrency has lost 17% of its value over the past week, mirroring a broader market selloff that has weighed on risk assets across the board.
At press time, ETH is trading at $1,682, down 4% in the last 24 hours. The price has already broken below the February 6 low of $1,747, leaving it vulnerable to further downside toward the $1,538 and $1,380 levels, the latter last seen in April 2025.
Technical Picture Remains Bearish
The weekly chart for ETH/USD shows a clearly bearish structure, with the asset trading well below both the 50-day exponential moving average (EMA) at $2,116 and the 100-day EMA near $2,223. These levels now act as overhead resistance, reinforcing selling pressure on any attempted rallies.
Momentum indicators on the daily chart underscore the bearish bias. The Relative Strength Index (RSI) is deeply oversold at 29, which historically can precede short-term bounces, but the MACD remains below its signal line, suggesting downside momentum is still dominant. Traders should watch for a potential corrective bounce, but the overall trend favors sellers until ETH reclaims key resistance levels.
If the minor support at $1,630 holds, Ethereum could attempt a recovery toward the initial resistance at $1,835. A decisive break above that level is needed before the asset can target the $2,070 resistance area. However, the liquidity magnet around $1,380 remains a significant draw for bears, and a drop to that level would represent a retest of the April 2025 low.
Broader Market Context
The selloff in Ethereum is part of a wider downturn in the cryptocurrency market, with many altcoins suffering double-digit losses. Bitcoin has also declined but has shown relative strength compared to ETH, leading some traders to favor BTC/ETH pairs as a hedge against ETH-specific weakness. For context, similar risk-off dynamics have been observed in other markets, such as the recent struggles of PI Token at the $0.10 support level amid low trading volumes.
Tom Lee Remains Bullish on Long-Term Outlook
Despite the current bearish sentiment, some prominent voices remain optimistic about Ethereum's long-term prospects. Tom Lee, chairman of Bitmine—the largest corporate holder of Ethereum—reiterated an ultra-bullish price target of $250,000 for ETH during the Proof of Talk conference in Paris. Lee argued that Ethereum is being underestimated by markets and that current pessimism may represent a strong buying opportunity.
Lee's thesis centers on the next phase of global economic activity, which he believes will be driven by autonomous AI agents interacting in real time. He contends that Ethereum's smart contract infrastructure and established developer ecosystem position it as the ideal base layer for machine-driven economic activity. Lee also noted structural changes within the Ethereum ecosystem, including the Ethereum Foundation reducing its holdings to a small fraction of the total supply.
However, Bitmine is currently sitting on nearly $9 billion in unrealized losses on its ETH holdings due to the ongoing price decline, highlighting the gap between long-term vision and near-term market reality.
Key Levels to Watch
- Support: $1,630 (minor), $1,538, $1,380 (April 2025 low)
- Resistance: $1,835, $2,070, $2,116 (50-day EMA)
- RSI: 29 (oversold, potential for bounce)
- MACD: Below signal line, bearish
For investors monitoring the broader market, the current environment echoes patterns seen in other asset classes. For instance, Nvidia's recent rebound on AI deals shows how sector-specific catalysts can drive recoveries, while supply deficits in commodities like aluminum highlight the importance of fundamental drivers.
This article is for informational purposes only and does not constitute financial advice.
