Ethereum (ETH) continues its downward spiral as the cryptocurrency market faces intense selling pressure and growing uncertainty. The second-largest cryptocurrency by market cap has recorded its worst February performance ever, plummeting 27.48% and breaking critical support levels.
Market data shows ETH failed to maintain stability above the $2,450 mark and slipped below several key support zones, including $2,350 and $2,320. The sharp decline pushed prices to a concerning low of $2,123, with technical indicators suggesting more bearish momentum ahead.
The dramatic fall marks a stark contrast to previous years' performance, where ETH saw gains of 46.28% in February 2024 and 8.78% in February 2022. This reversal has sparked worry among investors and traders about broader market stability.
Technical analysis reveals ETH trading well below the 100-hourly Simple Moving Average, with a bearish trend line forming resistance at $2,260. The cryptocurrency faces immediate hurdles near $2,220, while major resistance sits at $2,350.
Should ETH fail to reclaim the $2,250 level, analysts warn of potential further declines. The next support levels to watch are $2,120 and $2,050, with some experts suggesting prices could test the $1,880 mark if selling pressure persists.
The broader cryptocurrency market sentiment remains pessimistic, with extreme fear, uncertainty, and doubt (FUD) driving investor behavior. This market-wide panic has triggered substantial selling across major cryptocurrencies, with Bitcoin also experiencing significant losses.
Market participants are closely monitoring the $2,131 zone, which contains high network liquidity and could serve as a potential entry point for buyers looking to capitalize on the dip. However, the current technical setup suggests traders should remain cautious as the market continues to show signs of weakness.