Ethereum (ETH) plunged below $2,000 for the first time since May to hit an eight-month low of $1,934 on Thursday, with analysts warning the second-largest cryptocurrency could slide further toward the $1,400-$1,500 range last seen in Apr. 2025 if it fails to reclaim key support levels.
What Happened: ETH Loses Support
The drop brought ETH below what multiple market observers have called a critical zone. Daan Crypto Trades noted that while "overall price action has been awful this cycle," the technical levels on Ethereum's chart "have been very clean."
"These horizontal areas are all you need to be watching for the Ethereum price, in my opinion," he wrote. "Break one, target the next."
He highlighted $1,800 as the next area of interest if ETH cannot reclaim $2,000-$2,100, calling it "the breakout level from before the large rally driven primarily by Tom Lee/Bitmine." Altcoin Sherpa echoed that view, describing Ethereum's position as a "do-or-die region" similar to Bitcoin (BTC), and said the chart "looks bleak" after the price lost the 200-Week Exponential Moving Average.
The selloff has hammered large-scale holders. BitMine, described as the second-largest crypto treasury in the world, saw unrealized losses balloon past $8 billion after ETH broke below $2,000, up from $6.6 billion earlier in the week. BitMine chairman Tom Lee said the company still views the pullback as "attractive, given the strengthening fundamentals," adding that "the price of ETH is not reflective of the high utility of ETH and its role as the future of finance."
Spot ETH exchange-traded funds bled nearly $80 million on Wednesday alone, with $68 million in total net outflows across the first three trading days of the week, while ETH liquidations hit $326.6 million over 24 hours — roughly $245.5 million of which came from long positions.
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Why It Matters: Key Levels Broken
ETH has now declined more than 60% from its cycle high over the past five months. The cryptocurrency had traded in a $2,100-$4,400 macro range for roughly two years, only breaking below the lower boundary during the current correction.
If the $2,000 level is not reclaimed soon, analysts say the next major support sits near $1,400-$1,500 — Apr. 2025 lows that would represent a further 25% decline from current prices. With institutional treasury losses mounting and ETF flows turning negative, the burden of proof now rests on buyers.
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