ETH Faces Fresh $2K Resistance: March Price Projections Point to Sharp Decline
Ethereum could potentially sink beneath the $1,500 threshold in upcoming weeks as technical charts reveal a traditional bearish formation taking shape.
The upward movement in Ether's (ETH) value came to a halt on Monday evening slightly above the $2,000 mark, encountering significant resistance at higher levels, while technical indicators point toward intensifying downside pressure should the ETH/USD trading pair fall beneath the $1,800 threshold.
Key takeaways:
- ETH price must hold above $1,800 to avoid another leg down.
- Ether's bearish charts and onchain indicators converge on ETH prices below $1,500.
ETH price: $1,800 remains a key level to watch
The cost-basis distribution heatmap for Ether reveals robust support that has recently formed in the vicinity of $1,800. Within this zone, approximately 1.23 million ETH tokens were purchased at an average cost of $1,890 throughout the preceding 30-day period.
This zone has emerged as a significant support level for ETH, and should it fail to hold, the asset would probably revisit the low points observed during February.
Information from CoinGlass indicates that short position liquidations exceeded $120 million across the previous 48 hours, eliminating leverage positioned above current levels. At present, cumulative long liquidation exposure totaling $624 million exists above the $1,800 mark, creating a liquidity cluster positioned beneath the current spot price.
Market analyst Maartunn from CryptoQuant identified 67,000 ETH, valued at approximately $130 million, positioned just beneath the current spot price, further emphasizing the importance of this support area.
ETH price triangle pattern targets sub-$1,500
From a chart analysis perspective, the support zone spanning $1,800 to $1,900 aligns with the lower boundary line of a symmetrical triangle formation visible on the daily timeframe.
Should the downward pressure continue, the ETH/USD trading pair could potentially breach the triangle's lower boundary positioned at $1,850, subsequently testing support at the $1,750 level, which represents the multi-year minimum recorded on Feb. 6.
Falling beneath that level, ETH might decline further toward the triangle's calculated target price of $1,400, representing a 28% decrease from current price levels.
At the same time, the MVRV extreme deviation pricing bands for Ether indicate that ETH's valuation maintains additional downside potential before investor-held unrealized profits reach an extreme threshold, estimated at approximately $1,650, as illustrated in the chart displayed below.
Throughout previous bear market cycles, ETH has consistently established bottoms beneath the lowest MVRV band, a pattern observed during both 2018 and 2022.
Should this historical pattern repeat itself, the ETH price floor could potentially materialize below the $1,650 level within the current market cycle, corresponding with the previously mentioned symmetrical triangle projection.