Ethereum has taken a severe hit in the past few days, plunging over 20% since Friday as the global market downturn extends its reach into the cryptocurrency space. This steep decline is fueled by a combination of broad-based risk aversion and specific pressures within the crypto market. Notably, Jump Crypto has been liquidating approximately USD 300m from a single wallet over the past two weeks, exacerbating the sell-off.
ETH is clearly reversing whole up trend from 878.50 (2022 low). Technically, there is prospect for a bounce at current levels, which is close to 61.8% retracement of 878.50 to 4092.55 at 2106.26, to bring near term consolidations. But risk will stay on the downside as long as 2797.60 support turned resistance holds. Sustained break of 2106.26 will pave the way to 1519.15 support next.
In summary, while Ethereum may find some temporary support around 2100 level, the overall risk remains skewed to the downside as long as it remains below 2800 resistance.
