A deepening selloff in the crypto market has sent the second-largest cryptocurrency, Ethereum, trading at levels last seen in two years. The crypto plunged to trade at nearly $1,500, erasing billions in value and triggering widespread liquidations.

As bearish sentiment takes hold, traders are questioning whether ETH can stabilize or if a plunge toward $1,000 is the next chapter. Ethereum’s recent price action points to a possible downward pressure.

Technical Breakdown Aligns With On-Chain Weakness

The token, now hovering around $1,500, Ether, is on clear downward momentum. The crypto is trading below both the 50 and 200 moving averages.

Ether drops to levels last seen in 2023

Previous support levels at $1,829 and $1,550 have collapsed under mounting sell pressure. Interestingly, since December, the price has been on a clear downward trend of lower highs and lower lows.

The sell-off has been a widespread trend in the industry since Trump announced sweeping tariffs across the globe. Data from CoinMarketCap shows that the market is down 8% at $2.43 trillion.

For instance, the top cryptocurrency, Bitcoin, has dropped 6% in the past day and by a similar margin in the last week, trading at $ 77,459. Other popular digital assets XRP and Solana have also declined 13% and 12%, respectively, in the past day.

Derivatives Market Reacts as Bulls Test the Waters

Meanwhile, CoinGlass data shows Ethereum open interest falling 15% in the past day by $486 million, a sign that many speculative positions have already been flushed out.

Of importance to note is that Ethereum price is currently at the oversold zone at 26. This means price can reverse course momentarily before any further downward momentum can be seen.

Collapse or Comeback?

Short-term charts suggest ETH could test $1,424 or even fall to the $1,000 level if support zones continue to give way. Yet the market remains optimistic about a longer-term rebound. With Ethereum’s role in decentralized finance, NFT infrastructure, and blockchain innovation, the token still has structural strengths.

With sentiment turning bearish and traders eyeing critical support levels, Ethereum’s next move will be crucial, not just for its own trajectory but for the wider crypto market as well.